U.S. Gas Prices Expected to Rise After Devastating Flood in Mexico

The Mexican state of Tabasco has been hit by Katrina-like weather as 80% of the oil-rich state is submerged in murky water. Mexico's President Felipe Calderon said in an interview that "the storm has forced the closure of three of Mexico's main oil ports, preventing almost all exports and halting a fifth of the country's oil production." This spells trouble for U.S. gas prices as 30% of America's crude oil supply comes from Mexico. If Mexico is unable to export, U.S. drivers should expect the price of gas to rise within a few weeks. Blogger Robert Rapier believes this catastrophe "will probably be the catalyst to push oil past $100 this week."

Gas prices are already unusually high with summer travel season over and the Holidays yet to begin:

 AveragesRegular
Mid PremiumDiesel E85 E85 MPG/BTU adjusted price 
 Today Avg.
 $3.004 $3.190 $3.304 $3.326 $2.436 $3.206
 Yesterday Avg.
 $2.989 $3.174$3.304 $3.315 $2.433 $3.202
 Month Ago Avg.
 $2.769 $2.940$3.289 $3.086
 $2.256
 $2.969
 Year Ago Avg.
 $2.202 $2.337$2.422 $2.602
 NA NA

 

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Comments

  • 11/8/2007 6:06 AM Hal wrote:
    Thanks posting the "adjusted" price of E85 along with the other more mainstream fuels.
    I enjoy these articles.

    Q-What additional tax incentives do you feel will be coming down the pike to assist the Ethanol industry in the US?
    Q- What do you think would happen in the US and in Brazil if the current tariff on imported ethanol was lifted ?

    Thanks...an ethanol user
    Reply to this
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