EclectEcon

Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities

C'est la vie; c'est la guerre; c'est la pomme de terre . . . . . . . . . . . . . email: jpalmer at uwo dot ca


. . . . . . . . . . .Richard Posner should be awarded the next Nobel Prize in Economics . . . . . . . . . . . .

Tuesday, August 30, 2005

Oil Prices, Gasoline Prices, and Katrina

The television journalists I have been watching do not understand.

Oil is traded in a world market. Katrina had little effect there, as can be seen here which lists oil futures prices. There was a minimal impact on oil futures for January '06.

Gasoline is traded regionally in the U.S., and gasoline futures for January '06 rose by nearly 20%.

The major energy effect of Katrina will be on U.S. (and probably Canadian) gasoline prices because of the impact on refining capacity, not because of the minor impact of world pumping capacity or reserves.

For much more, see James Hamilton's Econobrowser.
 
Who Links Here