Drivers in the southeast saw a new magic number for gasoline this weekend: $5 per gallon.
The latest surge came in the wake of Hurricane Ike, which destroyed at least ten oil production platforms in the Gulf of Mexico.
But if this news has you thinking of trading your sedan for a moped, take heed. Analysts say these latest gasoline highs will be localized and temporary. The damage from Ike pales in comparison to that from Hurricanes Katrina and Rita, which knocked out more than 100 platforms in 2005. Overall, oil prices are declining sharply due to declining demand. The latest tremors on Wall Street have oil trading well below $100 a barrel.
Source: Associated Press