Reply #5: You're right. Here's a link from Bloomberg; the rationing seems to be... [View All]

[VolcanoJen]

... on the wholesale end.

They've got to watch the way they throw the "ration" word around. Widespread panic could ensue, you know?

Oil Rises, Gasoline Reaches Record as Katrina Forces Rationing

Excerpt:

Aug. 31 (Bloomberg) -- Crude oil rose above $70 a barrel and gasoline reached a record for a third day after Hurricane Katrina paralyzed U.S. oil output, refining and imports along the Gulf of Mexico coast, forcing wholesalers to ration fuel.

Oil and natural gas platforms were shut for a fourth day, sending natural gas prices to a record as well. Eight refineries in Louisiana and Mississippi, accounting for more than 10 percent of U.S. refining capacity, were closed by the approach of Katrina, the most powerful storm to strike the Gulf coast since 1969.

``You have an oil market that is quite tight in the products side, particularly in the U.S.,'' said Robert Mabro, president of the U.K.-based Oxford Institute for Energy Studies. ``Then you have a hurricane which closed eight refineries. The market looks at the situation and realizes supplies are even tighter. Prices will only fall if demand declines.''