Ike Update

Hi to all...

Some good news in all the Ike mess...

Gasoline now trading down in electronic trading, down now by close on 12 cents a US gallon.

News from the Gulf area seems to indicate that there has been a little damage but nothing substantial-SO FAR.

Refineries still remain closed but it shouldn't be too long before they are up and operating according to that. How long is the question. While it wasn't the wind, it is the water that damages refineries more and flood damage remains a concern. Ike came ashore as a category 2 storm and the storm surge was not as high as was initially projected, being recorded close to 13 feet rather than the initial 20 feet.

In the meantime, crude oil is also trading lower as refineries do not need what they cannot process. That is causing a slight build in available crude stock in the markets.

The recommendation still holds: to fill up tonight before the wave hits our wallets and then stretch your usage as long as possible. My best guess is that this one may dissipate sooner than the Katrina event and things may get back to "normal" sooner than the expected. If the damage assessments keep coming in with good news, look for pricing to retreat.

Hope this helps!

Regards,

George