New Orleans?

Katrina will have a disastrous effect on the price of oil come Monday morning.  This could not come at a worse time considering the fact that we are coming out of the summer highs.

Katrina is hitting the heart of the US oil industry.  Gulf production is being shutdown to weather the storm, as is the port of New Orleans, a major point of entry for foreign oil.  The area is also home to several large refineries.

I predict oil will hit $70 on Monday, and possibly $80 by the end of the week depending on the devastation caused by Katrina.

Hang onto your hats, it is going to be a wild ride!