Gas crisis looms

NEW YORK (CNN/Money) – The impact of Hurricane Katrina on U.S. oil production and refinery capabilities may be worse than initial reports estimated and could lead to a national gas crisis in the short-term, analysts warned Tuesday.

With the U.S. economy cruising at about 4 percent growth, economists still see Katrina’s effect as only a speed bump in our path, and not the end of the road.
…”Without the hurricane we had perceived a bounce in U.S. oil inventory,’ Englund said. “But if refineries are out of commission because of damage or flooding for an unspecified period of time, it will shock the entire system and I expect firms will hold back their production.”

This could send oil, gasoline and heating oil prices soaring than their current record levels.

CNN/Money