It’s looking like the menace of Hurricane Gustav means oil prices could go either way next week and no one, even the analysts, seem confident in which way to jump. It’s not unusual to see oil leap whenever there’s a perceived threat to oil supplies, be it weather or terrorism related, for example.
Analysts are divided on what the outcome will be if Gustav does indeed hit hard. Memories of hurricane Katrina, which was right at this time of year in 2005, are still fresh in most people’s minds with the anniversary having just passed. This time round though, speculation is rife that some of the Strategic Petroleum Reserve supplies might be made available. Others are banking that enough of a disruption could lead to oil soaring above the $120 a barrel mark.
