The Oil Drum | An Evening Note on Katrina

20 comments on An Evening Note on Katrina

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MikeCapone on August 28, 2005 - 6:54pm

What is the upper limit that we could predict the barrel of oil jumping to?

Most people seem to instinctively think "over $70", but what if some oil production gear is REALLY badly damaged and inoperable for a while, could it trigger some kind of chain reaction and bring oil over $80/bbl? $90? $100?

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mw on August 28, 2005 - 7:03pm

IF later in the week reports of significant damage that has months written on it in terms of repair, then chances are high crude will push to 73, pause to catch its breath and then head up beyond 80. All depends on how big and how long term the problem is.

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Prof. Goose on August 28, 2005 - 7:35pm

I found this somewhere today: the maximum increase (crude futures) for one day on NYMEX is $10.00 then they stop trading, so we could conceivably see $78.00 on monday. The options contracts are limited to $7.50 per day I think...Can anyone confirm this?

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fireangel on August 28, 2005 - 9:38pm

I think There is a time limit of an hour imposed when prices move by $10.Trading stops and then restarts. I remember reading this somewhere. Sorry I am not sure. In my opinion with refining capacity down more than crude oil production capacity that may set a ceiling on the price.

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20 comments on An Evening Note on Katrina

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