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Wednesday, September 21, 2005

Rita could equal $5 gas 

Rita could equal $5 gas
The timing and strength of the latest storm could cause worse spike at the pumps than Katrina did.
September 21, 2005: 2:43 PM EDT
By Chris Isidore, CNN/Money senior writer
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Hurricane Rita could cause a new gas price spike if as expected it hits the Texas Gulf Coast Friday or Saturday.







NEW YORK (CNN/Money) - Remember when gas spiked to $3-plus a gallon after Hurricane Katrina? By this time next week, that could seem like the good old days.

Weather and energy experts say that as bad as Hurricane Katrina hit the nation's supply of gasoline, Hurricane Rita could be worse.

Katrina damage was focused on offshore oil platforms and ports. Now the greater risk is to oil-refinery capacity, especially if Rita slams into Houston, Galveston and Port Arthur, Texas.

"We could be looking at gasoline lines and $4 gas, maybe even $5 gas, if this thing does the worst it could do," said energy analyst Peter Beutel of Cameron Hanover. "This storm is in the wrong place. And it's absolutely at the wrong time," said Beutel.

Michael Schlacter, chief meteorologist at Weather 2000, said Rita now appears most likely to hit between Port Arthur and Corpus Christi, Texas, sometime between Friday afternoon and Saturday morning.

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