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Isaac perfect storm for rising gas prices

By Palm Beach Business.com

DELRAY BEACH – Add higher gas prices to the havoc wrought by Isaac.

The tropical storm, soon to be a hurricane, steamed into the Gulf of Mexico, forcing oil production to shut down — and gasoline price to rise. About 24 percent of domestic oil comes from offshore platforms in the region, according to the U.S. Energy Information Administration.

Oil production in the Gulf of Mexico came to a halt Friday as forecasters predicted Tropical Storm Isaac neared oil platforms. While it's still to early to tell how long Isaac will delay Gulf oil production, motorists have already seen a rise in pump prices. Also factoring into the price equation: a fire at one of the world’s largest refineries in Venezuela.

According to AAA, retail gas prices in Florida jumped 9 cents last week.

The good news: crude oil actually fell 68 cents Monday to settle at $95.47 as investors speculated that the storm will have minimal impact on supplies. Still, the storm presents an uncertainty.

"Only after Isaac passes through the Gulf, will experts be able to assess any damages and determine when oil production can resume," AAA spokewoman Jessica Brady said. "Whether Gulf oil production resumes today or later this week, motorists are likely to see gas prices increase into the Labor Day holiday."

In Palm Beach County, gasoline price surged about 8 cents over the past week to $3.879 a gallon, according to AAA’s Fuel Gauge Report. In Broward, the increase over the week was about 12 cents, to $3.871 a gallon.