Reuters reports that Hurricane Katrina could be the catalyst that pushes nationwide gas prices above $3 a gallon.
“The spike in wholesale prices from below $2 last Friday came after Hurricane Katrina plowed through the Gulf of Mexico and made landfall near New Orleans, forcing shut at least eight refineries in Louisiana and Mississippi and slowing production from two others,” Reuters reports.
“The shut refineries and plants with reduced production account for about 15 percent of U.S. refinery production.
“Tuesday, a gallon of gasoline traded in the Houston-based Gulf Coast physical marketing hub cost about $3.15 a gallon — sharply higher than the national average retail price of about $2.60 a gallon.
