This move will have a short-term negative impact on the equity markets. However, it is longer term, a positive.
The market needs at least a minimum of three 350,000-barrel-per-day refineries to comfortably meet and keep up with the pace of demand here in the U.S.,
Traders are more focused on Hurricane Rita as this weather event could have a longer-term devastation on the infrastructure of our nation's oil industry's ability to provide energy to citizens.
With the overhanging cloud of the Iraqi situation, renewed fears of terrorism and tensions with North Korea, this market breeds fear, and fear drives stock prices lower.
Crude oil tumbled in the final minutes of trading as traders are taking an attitude that prices may not see a substantial gain based on supply disruptions from Hurricane Katrina.
If the core rate shows lower inflation than expected, it will give a hint that the Federal Reserve is close to the end of its rate hikes, and this would give equity markets a boost overall.
If this storm does start to track towards [the Houston] area ... we would certainly see a lengthy recovery process in the nation's refinery industry.
Concerns over inflation have not disappeared.
Demand is up mainly as it has a dual role as a food and bio-fuel product.