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All thanks to hurricane Isaac 93%.
Of offshore gulf oil and sexism -- gas output or off line plus.
Today Chevron announced that has shut in all of its production in the region.
So let's find out how this impacts you.
From -- different banks in the gold rector views of Platz a -- you know you obviously we've been doing this for years every year we go through hurricane season.
We're off to a bank with Isaac how you -- Well I think that this action is gonna be not that big an impact I think that all signs point to not any damage out in the fields obviously everybody should and you mention Chevron.
Everybody were sitting in like a day or two ago.
That I think you're gonna see all pretty much come back by Friday or Saturday there are no signs that.
Any rigs let loose you know sometimes some of these -- storms some of these rigorous torn from their mornings and just sent out on a little journey around -- The big issues going to be power -- -- of power back to -- refineries that are shut them in wall new walls area.
Because if you lose that doesn't matter you've got the crude if you don't have any place to process -- some of the refiners are still operating but the question is going to be power for the ones that Michelle.
Okay is indicted 3% of oil production in the gulf not a big deals more about the refinery capacity that your concern about that would affect gas prices at the pump for everybody elephant and -- -- this is.
-- mark this is a market that has actually been in the past several weeks.
-- -- -- -- Sometimes they'll talk about markets accrued led.
-- -- talk about markets at a product led if you look at the gains over the past several months this is definitely what we're gasoline and diesel are pulling up the price of crude not the other way around.
-- the great thing about that for the consumers say is that you can just simply ramp up your refinery put the -- through it and you can.
They'll produce more gasoline in the market needs and you can drive down that price on that actually is not to be that simple if you've lost lot of refining capacity because of power across.
-- got timing.
You know how long does it take -- refiners to get back up and running is in the days at three -- -- several days but they have to get in there and they have to see whether there was any flooding.
I have to get the power back -- -- -- about the consumer angle lawless imaging gas prices to you earlier we're going into the in the summer.
And crude down today for for various issues one about -- -- of course talk about SPR.
But at the same time you would think at this point that gasoline price would be falling.
-- we -- I mean at 380 per Kaplan.
Well I do think that again it's it's -- it's a products -- market I think that the market lost lot of supply in the spring we have a lot of a lot of refinery maintenance.
Maintenance and that has pulled up the price of crude behind it if you look at what they call the crack spread which is the difference between the price of crude.
And the price of products it's extremely strong that's a signal to refiners to ramp things up and they will be able to as -- -- get those plants operating.
You know John I have to ask you -- the debate coming up let's talk about the SPR is the political note visit do we really need.
Release of you know from the SPR where you stand on this.
I can't imagine why we need to release from the SP artifact the EIA -- that you referred to earlier showed a build in inventories today when everybody was expecting a draw.
I think you're gonna find that the platforms in the production gonna come back fairly nicely.
Over the next couple of days and at this point if you're going to release oil from the SPR.
You really have to say the politics -- be the driving force.
-- the White House keeps saying if needed if needed.
-- there pageant and I was obviously yeah.
The G-7 out of statement yesterday which if you read between the lines almost sound like the justification for an SP -- -- yeah our attack while that our debate coming -- -- classes great to have you on the show and then get the CEO.
Right he's the class global director of news closing bell there --
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