Revived (Hopefully)

Although crude oil prices have fallen in the wake of Hurricane Gustav's landfall, consumers will not see much relief in gasoline prices. The Gulf Coast is home to much of the United States' drilling and refining operations, and 10-20% of the US' refining capacity was shut down in anticipation of the storm. The storm did not cause nearly as much damage as speculated, and oil drilling and refining equipment was largely spared. Oil operations are expected to resume at full capacity by this weekend.

After the storm became of less concern in the eyes of oil traders, they focused on fears of stunted global economic growth, even in rapidly developing countries such as China and India. In order to avoid a steep price drop in the cost of crude oil, OPEC has decided to fight for a $100/barrel floor in prices. This will maintain gas prices around their current levels following the drop in prices as the increased demand of the summer season has dissipated.