The Oil Drum is reporting that capacity is flowing back into the previously shutdown pipelines across the souther US. This includes refined goods like gas and heating oil.
Theoretically, this should mean that gas prices should stop their incredible climb of the past week… do you believe they will?
Here’s my completely unscientific, utterly pessimistic prediction.
The Canadian average will be $2/L by for Boxing Day. It is currently sitting around $1.16.
The US Average wil be $3.25/Gal…. it currently stands at 2.61
And for comparison sake.. the average prices in Europe, in August, were around 1.07 Euros /Litre… that works out to about 1.61/L Canadian or $3/Gal in the States. (I believe I heard reports of 1.90 in France and Belgium since Katrina).
Since Katrina, prices in the UK have it the mark of 1 pound/L … or about $CAD2.25/L , $3.50 US/Gal
Just a little perspective for your Labour Day Monday morning.
This morning the Oil drum is also pointing to a report in the Washington Post that reports on the status of refineries in and around the Gulf Coast. Many are already back or coming back online soon but up to 4 could be shutdown for many months and take 5% of the US’s refining capacity with it.