The hurricane has been downgraded slightly, so prices will tend to ease, but they could just as easily head higher again [if] the weather forecast dictates,

Hurricane Katrina caused already skyrocketing energy prices to soar even higher, and as the months grow colder, it could leave many low-income families and seniors struggling to heat their homes,

consumer spending has not been dented by the hurricane-inspired rise in gasoline prices and fears of higher home heating oil bills.

It's a new version of the butterfly effect. A hurricane in the Gulf of Mexico can lead to higher prices around the world. That's how vulnerable oil markets are today to events outside of our control. And it shows how little room there is for errors.

oil had a measurable impact on prices paid before the storm (Hurricane Katrina). Given the fact that we are now seeing energy supply interruptions the prices paid index will almost certainly be back above 70 next month, and it's very likely the headline index will fall further on weakness in both production and orders.

With what's going on with the aftermath of the hurricane, I would expect prices to go up rather than down in September.