hurricane katrina and UK petrol prices.

[chris-n-vick]

could somebody PLEASE explain to me why a "catchline" on the national UK news was "how the hurricane in the US is to force petrol prices in the UK to almost �1 a litre"

i missed the actual article on said news as was taking the dog for a walk at the time!

[january_bug]

I don't quite understand your question.  What is the "why"?

• Why it was on the news?
• Why is was only a catchline?
• Why they chose those words?
• Why the hurricane has caused our petrol prices to rise?

Sorry - am still a bit sleep this morning!

If you're asking the last one, the answer is this... the Southern States are an oil producing region and as a consequence of the hurricane much production has been suspended/has ceased.  Basic economics of course tells us that when supply falls, but deman remains constant, prices rise.  And as we know, when the price of oil rises, up comes the price of petrol. 

http://news.bbc.co.uk/1/hi/wales/4217554.stm

I know not everyone trusts the BBC (peahead :-p ) but here's the story. 

[chris-n-vick]

ty that was the answer i was looking for........ i too was 1/2 asleep when i typed the question so i probably didnt compose it as clearly as i could have done normally.

[woofgang]

to add to j-b's answer. this comes on top of rising oil prices caused by chin'a growing industrial market and its consequent increase in fuel purchase.

[january_bug]

:-)  Glad we got through to each other in our sleepy states! :-)

[Clanad]

Actually, if I may... the world market is pretty much awash in oil... no shortage. However the refining of the oil into useable products, especially gasoline (petrol) was impacted by Katrina.  Most of the large refinieries in the U.S. are situated in the Gulf Coast so as to be near the incoming raw oil from the Middle East.  No new refineries have been built in the past 25 to 30 years and the existing ones are producing at maximum capacity.  Therefore, any disruption in that process has an immediate affect on prices.  I don't know if the U.K. has much in the way of refining capabilities or if you import from the U.S. and other countries.  Fortunately, the refineries here will be back up and running in a few days.

That begs the question though, as to why new refineries aren't being considered.  To build a new one in the U.S., due to all of the environmental considerations as well as the usual NIMBY, means one begun today would not be completed for about 10 years...

[january_bug]

Yeah, but try building anything remotely "ugly" offshore in the UK.  You've heard of windmills........!?!

The Brits can be pretty awful NIMBYs too! :-(

[joules99]

If the market wasn't so controlled it should not make any difference, did you know Scotland produces 18 times more oil than we actually need in the UK apparently.  Globalisation, yeah right on..