US Oil Industry Spared Major Damage

The United States oil industry has escaped the wrath of Hurricane Katrina with light to moderate damage. This means consumers have likely dodged major increases in oil prices. Experts expect small increases in the price of gas over the next few days, reflecting the effects of shutting down refineries in anticipation of Hurricane Katrina. Prices will be helped be a short-term drop in demand, due to the fact that many people have been displaced by the two hurricanes. The hurricanes have also altered the driving patterns of millions of people, leading to a further drop in demand. Ultimately, the deciding factor will be how fast refineries can be brought back online, and be brought back to peak operating capacity.