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Wall Street is bracing for Hurricane Rita which is headed right for the Texas coast.

Texas is home to the biggest concentration of U.S. refineries, accounting for 26 percent of the nation's total capacity. BP Plc and Valero Energy Corp. are evacuating workers and slowing output at three Houston area refineries. Rita, a Category 4 storm, may hit the Texas coast on Sept. 24. Four refineries in Louisiana and Mississippi, representing 5 percent of U.S. capacity, remain shut because of Katrina.

Gasoline for October delivery surged 8.34 cents, or 4.2 percent, to $2.06 a gallon at 1:30 p.m. on the New York Mercantile Exchange. Gasoline futures reached $2.92 a gallon on Aug. 31, the highest since trading began in 1984. Futures are 60 percent higher than a year ago.

Crude oil for November delivery rose 92 cents, or 1.4 percent, to $67.15 a barrel in New York. Futures touched $68.27, the highest since Sept. 2. Oil has declined 5.2 percent since touching a record $70.85 a barrel on Aug. 30. Prices are 43 percent higher than a year ago.

Posted by edelfenbein at September 21, 2005 2:49 PM