Brace for $1.75-a-litre gas if storms ravage Gulf, CIBC's Rubin says
01.09.2008 18:01
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- Source: cbc.ca
Toronto economist Jeff Rubin, who has predicted that oil will hit $200 US a barrel by 2010, says drivers should brace for gasoline to spike to $1.75 Cdn a litre this year as storms threaten oil production in the Gulf of Mexico. CIBC World Markets, where Rubin is chief economist and chief strategist, issued a statement Friday quoting him as saying that tropical storm Gustav is "tracking another potentially lethal swath through America's energy heartland" three years after hurricanes Katrina and Rita upset production there. 'America’s one and only source of production growth could be shut down again and the price impacts would be severe.'—Economist Jeff Rubin"And with both oil and gasoline inventories much lower than when Katrina and Rita hit, the price consequences could be even worse this time. Any replays of the 2005 storm season could see gasoline prices soar to $1.75 per litre," he said. In a commentary posted on the firm's website, Rubin added: "Whether Gustav ultimately lives up to its hurricane billings and sidelines production like Rita and Katrina remains to be seen, but its very presence in the rig-dotted region underscores the vulnerability of U.S. domestic crude supply to climate change. "Just as America has come to rely more and more on Gulf production to offset steadily declining production from Alaska and the lower 48 states, the frequency of high grade storms (class 3 to 5 hurricanes) in the region has nearly doubled in recent years. America’s one and only source of production growth could be shut down again and the price impacts would be severe." CIBC World Markets is an arm of Canadian Imperial Bank of Commerce. RelatedInternal LinksOil prices climb as Gustav approaches Gulf of MexicoExternal LinksCIBC World Markets: Supply Crunch(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window) Consumer Headlines11 deaths confirmed in listeriosis outbreakListeriosis, which has triggered a series of recalls of processed meat products, was the underlying or contributing cause in 11 deaths, up from 10, according to the Public Health Agency of Canada.GPS-based system could help ease traffic jamsRelief could be down the road for motorists looking to escape traffic jams in Ottawa thanks to new technology being tested in Ontario.U.K. military, PETA to meet over headgear using Canadian bearskinThe British military says it will meet with animal-rights activists on Tuesday to discuss alternatives to the use of Canadian bearskins for the Royal Guards' headgear.Aviation industry slow to act on Swissair safety issues, investigators sayA decade after the Swissair Flight 111 crash off Nova Scotia that claimed 229 lives, the aviation industry has yet to act on recommendations stemming from one of lengthiest and most expensive air investigations in Canadian history.Quebec poutine comes of age at 1st-ever festivalA foie gras poutine served at a festival in the central Quebec town Drummondville confirms the dish's place in the world of haute cuisine. Consumer Life FeaturesIN DEPTHFood safetyFrequently asked questions about listeriaYOUR INTERVIEWBack to school tipsAn expert takes your questionsSAFETYRecalls and AdvisoriesYOUR INTERVIEWListeriosisDr. Allison McGeer takes questions on the outbreakBLOGFood BytesListeria hysteria?BLOGComm-OdditiesFarmer's winePeople who read this also read …
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