Cold Winter

If a minor tropical storm can raise the price to record highs, imagine what a real disaster would do, a serious terrorist attack on refineries, for example, or who knows what.

CNN Money

Oil surged to a record high above $61 a barrel Wednesday as a tropical storm in the Gulf of Mexico fanned worries about refiners' ability to bolster fuel supplies ahead of next winter....

The energy crisis is going to get nasty I think more quickly than we can imagine. When things begin to break down the rate of break down always seems to accelerate. The most memorable examples that occurred in my lifetime were the collapses of Vietnam and of the Soviet Union.

Update:

Record oil prices may increase to $80 a barrel this year, options contracts on the New York Mercantile Exchange show. Investors are speculating OPEC won't produce enough oil to compensate for any disruption to supplies.

From Bloomberg via Atrios

$100 a barrel anyone?