Monday, June 17, 2013

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Issac's impact at the pump
Posted: 08.28.2012 at 10:02 AM
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KIRKSVILLE, MO -- Get ready for some price swings at the pump.

All of this in the wake of Issac which is expected to make landfall near New Orleans Wednesday.

A hurricane warning is in effect for much of Gulf Coast which is home to the nation's refining capacity. Heading into Monday evening more than 1.3 million barrels of daily gasoline refining capacity in the region was shut down ahead of the storm.

Out in the Gulf of Mexico much of the same was happening. More than half of the oil rigs and platforms evacuated their crews Monday with more leaving throughout today.

As a result, nearly 80% of oil production in the gulf and nearly half the natural gas output has been shut down.

Unfortunately prices have gained more than 7% in August but are still down nearly 9% from the July 2008 record of $4.11.

Across the Heartland, prices have not quite had the dramatic impact felt across the south.

Missouri prices have risen 3.8 cents per gallon over the last week with an average of $3.60. Iowa has actually been holding pretty steady over the last week with an average of $3.67. This compares with the national average that has risen to $3.75.

AAA estimates that the national average could shoot up at least 10 cents over the next few days due to the disruption in supplies from Issac.

All of this comes as we head into what is normally a busy holiday travel weekend.

There is some good news, if the storm moves through with no lasting damage, prices could drop back down as quickly as they rise

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