Many Americans are wondering if the wrath of Katrina will be felt nationwide, with oil production slowdowns in affected storm areas likely raising the price of gasoline.
Mark Rout, a senior consultant with Energy Security Analysis, Inc. told MSNBC's Amy Robach that price rises could be temporary, depending on the extent of the damage and whether President Bush decides to tap into the strategic oil reserve.
"I do believe we're going to see another 7-10 days in disruption of the supply. There are a lot of refining assets located in that area of the Gulf and it make take them that long to get back on line. More particularly to get the transportation and pipelines working," Rout said.
Rout noted that the higher price of crude oil would have happened regardless of the final damage done by Katrina.
"It's interesting, if you look ... you can actually see the price of crude oil going up in advance of Katrina hitting. That's typical of the axiom 'buy the rumor and sell the fact.' I firmly believe that once you see the facts come in and damage is not as bad as what could have been anticipated, prices would relax," he said.
"Most of these refineries can be up and going in 48-72 hours," Rout added. "In fact, there are reports that some crews are already on the rigs checking for undersea damage. ... Some refineries are already reporting that they're firing up their boilers and so forth, so I think that the you'll see the return of these refining assets fairly soon."
Another action that could lower prices could be President Bush tapping into the strategic oil reserve.
"I certainly thing think it can't be anything but good news. There are at least two refineries that have already said that they would welcome such a move," Rout said.
Another thing that consumers can look forward to, according to Rout, is the typical end-of-summer drop in gas prices, regardless of Katrina's impact.
"It might delay it, but I don't think it changes the outlook. We're going to change to a different grade of gasoline in the wintertime, that's going to make it cheaper and easier for refiners to make," he said.
"Demand typically peaks here at the Labor Day weekend. So with the exception of a few spot outages or tight supplies, I think yes, definitely prices will look a little more relaxed as we go forward," Rout said.
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