Katrina's Gulf of Mexico Wreckage May Spark $100 Oil (Update2)
Sept. 1 (Bloomberg) -- As Hurricane Katrina slammed through the Gulf of Mexico, energy companies evacuated offshore workers and shut about 91 percent of the region's oil production, or 1.37 million barrels daily.
``There isn't the global spare capacity out there to replace this loss if it continues for a prolonged period,'' says Bart Melek, a senior economist at BMO Nesbitt Burns in Toronto. ``Already the market is tight as a drum, and if anything else happens, say instability in the Middle East, I wouldn't preclude $100 oil at all.''
