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Gas, Oil Prices Jump As Refineries Remain Closed

Posted on: Monday, 26 September 2005, 21:00 CDT

By Elizabeth Souder, The Dallas Morning News

Sep. 27--Oil and gasoline prices jumped Monday, and pump prices leaped, as Gulf Coast oil production shut down after the hurricanes and some refineries remained closed.

Crude oil prices rose to $66.01 Monday from $62.96 during a special trading session Sunday. Gasoline wholesale futures prices rose to $2.14 Monday from $1.99 Sunday.

U.S. prices at the pump rose on average six cents to $2.80 late Sunday, according to AAA. Texans saw larger jumps, except in the hurricane zone, with drivers in the Metroplex paying a dime more for gasoline, at $2.80 a gallon. Corpus Christi and, of all places, Amarillo saw the largest jump of 13 cents.

"The energy system dodged a bullet this time, and the markets heaved a sigh of relief over the weekend, but the supply picture remains compromised," Wachovia Securities analysts said in a research note.

Hurricane Rita knocked out any Gulf Coast oil production that Hurricane Katrina had missed. According to the Department of Energy, 100 percent of Gulf Coast oil production was halted Monday. The Gulf accounts for 29 percent of total U.S. oil production.

Plus, 14 refineries remained out of service Monday, and some will take weeks to restore. That's in addition to the four refineries shut down due to Katrina damage. The shutdowns strangle the already-tight supply of gasoline.

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Source: The Dallas Morning News

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