NOAA predicts that La Nina, evil sister to El Nino, will produce weather patterns in the Gulf Coast that could ramp up the number of hurricanes that hit the region this year. Any direct hit in the Gulf can always have a devastating impact. The losses are massive, not only in terms of the individual people whose lives are destroyed, which is the most tragic, but also to the energy and agriculture industries.

Drilling platforms, refineries, shipping terminals, pipelines, etc. are all impacted when a direct storm hits and refining and production grinds to a halt.

This is already driving prices higher in anticipation of more demand and possibly less supply. It’s still a little early to be worrying about hurricanes, but the reality is they will be here sooner than we think.

With the snow storm and cold weather on the east coast this past weekend the refineriies will stay with the winter production schedule so the inventory build up for gasoline for the summer driving season is going to tight.
The futures market usually play on the anticipation of the worst scenerio which drives the market up. But what can really move the prices is a true demand causing a shortage and everyone who needs it will pay anything for it.

Thus plan for higher prices at the gas pump.