Hurricanes and oil prices
How hurricanes affect oil prices -- which recently dropped to a five-month low -- and what we can look forward to in the coming weeks.
Oil refineries and rigs along the Gulf Coast escaped the major damage that followed Hurricane Katrina, and more recently, Hurricane Gustav.
Oil prices have recently dropped to a five-month low; but Kevin Kerr, "MarketWatch" contributor and editor of the trading newsletter "Global Commodities Alert," reminds us that this is just the start of a busy hurricane season.
He says we'll feel the effects of Gustav: the hurricane has caused evacuations and power outages, and that means oil production slowdowns well into next week.
Kerr says Hurricane Gustav, a stronger dollar, the situation in Georgia, and the strength of the European economy are all factors that have come together to lower oil prices.
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