Tropical Storm Isaac Shuts Gulf Coast Refineries

Before you go, we thought you'd like these...
Before you go close icon

As Tropical Storm Isaac is forecast to turn into a Category 2 Hurricane before its makes landfall near New Orleans, it has caused large oil firms to shut many of their platforms in the Gulf of Mexico. This short-term reaction to the storm is not the most serious one for the U.S. economy. The more immediate problem is that refineries around the Gulf will be closed.

Many of these refineries are used to provide gasoline, so the amount of time they are off-line is critical. Gasoline futures have risen steadily over the past several days, and speculators believe that gas prices could rise by 10 cents a gallon in the short term. There is also a chance that some refineries many be damaged by Isaac, which could keep gasoline production down for some time.

Douglas A. McIntyre


Filed under: 24/7 Wall St. Wire, Oil & Gas
Read Full Story

Markets

S&P 500 2,345.96 -2.49 -0.11%
DJIA 20,656.58 -4.72 -0.02%
NASDAQ 5,817.69 -3.95 -0.07%
DAX 12,039.68 135.56 1.14%
NIKKEI 225 19,085.31 43.93 0.23%
HANG SENG 24,327.70 7.29 0.03%
USD (per EUR) 1.08 0.00 -0.06%
USD (per CHF) 0.99 0.00 0.10%
JPY (per USD) 110.92 -0.43 -0.38%
GBP (per USD) 1.25 0.00 0.36%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners