Under the dual forces of the Wall Street meltdown and the havoc wrecked by Hurricane Ike, America's fuel markets are uniquely poised- oil and gasoline prices are racing in opposite directions. News of Lehman Bros. heading for bankruptcy and Merrill Lynch agreeing to a buyout, has triggered concerns that the American economy could give way, bringing down the global economy as well- cutting oi demand. Crude oil tumbled below the hundred dollar mark for the first time in six months, closing at Us$95.71 on the New York Mercantile Exchange.
Oil prices also slid because Hurricane Ike closed 14 gasoline refineries along the Gulf Coast, that collectively make about 22% of all the gas produced in the United States. Since close down refineries, can't use oil, the situation will lead to overstocking of oil unused by refineries. But since refinery closures triggered isolated gasoline shortages, gas prices spiked by as much as 10 cents overnight in some states.
As a result, the country's average gas price soared so high over the weekend that for once Californians were paying less than the rest of the country - something that has happened only four times this decade. The national average for a gallon of regular leapt 4 cents on Monday to reach $3.84, while Californians paid $3.82. This is because the state of California uses its own unique, pollution-fighting fuel blends, and most of the refineries that make those blends are on the West Coast.
16-Sep-08 
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