Gas Prices Spike as Hurricane Isaac Approaches
Analysts are predicting anywhere from a 10 to 25 cent increase in the coming weeks.
The National Hurricane Center says Tropical Storm Issac, which has been ripping across the Gulf of Mexico since Saturday, has become a hurricane.
And with dozens of oil rigs sprinkled across the Gulf Coast, many have been evacuated and shut down, according to CNN. The stopped oil production, of course, will likely cause already rising gas prices to go up even more in the coming days and weeks.
The cheapest unleaded gas available in Burnsville on Tuesday morning was $3.62 at PDQ.
Officials at AAA are predicting an increase of 25 cents in our southern neighbor of Iowa, while USA Today and CNN report an average increase of 10 cents nationwide. In a Savage Pacer article, GasBuddy.com a senior fuel anaylst, Patrick DeHaan, said:
"While this storm doesn't currently appear as powerful as other storms that have caused similar concern—we're continuing to watch the situation develop. One thing is for sure: I'm concerned that this storm will temporarily drive prices higher in the short term."
Hurricane Isaac targeted a broad swath of the Gulf Coast on Monday, bearing down just ahead of the seventh anniversary of Hurricane Katrina. By Tuesday, the hurricane is could hit from an area southwest of New Orleans to the edge of Florida's panhandle.
Currently, the storm is expected to make landfall as a Category 1 hurricane, however, there are other storm models that suggest it could land as a Category 3.