GUSTAV: Get Ready For $5-Plus Per Gallon Gas

Virtually every weather model takes Hurricane Gustav into the Gulf near New Orleans.
The new twist is now a couple of these models show Gustav taking a hard left turn as it approaches the Louisiana coast- then moving westward toward the Texas Gulf coast.

The UK-MET model at 120 hours (5 days) from the 7am CDT model initiation shows a landfall ON the Texas Gulf coast near Corpus Christi.

Regardless- all models are now showing Gustav plowing through the oil fields off the Louisiana and Texas coasts around Labor Day.

I expect the price of gasoline to spiral upward between now and Labor Day.

Five-dollar per gallon gas is not out of the question- and I wouldn't be surprised at all if it even goes higher than that ($6-8)- as each and every new weather model run reinforces the notion that Gustav will affect the U.S. Gulf of Mexico coast in a big way

Continuing in this gloom & doom scenario- some models are now taking the new storm Hanna into southern Florida later next week as well.

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