On Friday, oil prices zig-zagged, briefly dipping below $100 a barrel for the first time in 5 months, as the onslaught of a massive hurricane blowing toward refineries on the Texas coast countered fears about a global economic slowdown.

According to CNN, “U.S. crude for October delivery briefly traded at $99.99 a barrel on the floor of the New York Mercantile Exchange, the first time oil has fallen below the $100 a barrel mark in more than five months. The last time oil traded below $100 during a session was April 2, when it hit $99.84.”

Nonetheless, oil recovered to settle up 31 cents at $101.18 a barrel. Earlier, prices rose as high as $102.89. Oil prices were volatile as traders gauged what Hurrican Ike’s impact would be.

Hurricane Ike was located 295 miles east of Corpus Christi, Texas, and 195 miles southeast of Galveston, Texas. The National Hurricane Center warned the public that “preparations to protect life and property in the hurricane warning area should be rushed to completion.”

As reported by CNN, “refineries in danger: Texas is home to 26 refineries, which can process almost 4.8 million barrels of crude per day, or more than 25% of the nation’s total refining capacity, according to the Department of Energy. Most of Texas’ refineries are on the Gulf Coast parts of Houston, Port Arthur, and Corpus Christi. The entire Gulf Coast region houses 42% of total U.S. refinery capacity.”

To read the entire article from CNN, link here:

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