From initial reports, Hurricane Gustav appeared to leave production platforms and refineries essentially undamaged, meaning that oil and gas supplies would not be disrupted and prices at the pump may continue to ease.
At the least, oil experts said the risk of a sharp price spike appeared to have faded unless flooding or power failures have a lasting impact on refineries and port facilities.
“We dodged the bullet,” said Darron Granger, a senior vice president at Houston-based Cheniere Energy. “This is probably not going to have any impact on any oil or gas supply.”
News of the weakening storm sent oil and gas prices sharply lower. Crude futures on the New York Mercantile Exchange dropped $4.06 to $111.40 for a barrel of oil, the lowest level since spring and almost $36 below the July 11 record of $147.27. Natural- gas prices fell nearly 6 percent, to $7.48 per million BTUs. AAA reported that the average national price for unleaded gasoline of $3.69 held steady Monday.
