Aug 15 2005
With airports around the country coming within days, sometimes hours, of running out of jet fuel, one expert says this could be the first sign of much worse to come.
The Associated Press reports that airports in Arizona, California, Florida and Nevada recently faced fuel shortages. It puts the blame on the growing strain on refineries and pipelines.
Energy specialist and regular The Daily Reckoning contributor Justice Litle says this could just be the beginning. "America is in serious denial regarding the scope and seriousness of what looks to be a slow-building energy crisis," he says.
Recent outages at refineries have helped push oil prices to almost $64 a barrel. Litle warns, "Optimists point to rosy economic data in the face of $65 crude, but they ignore the heavy-duty erosion that is taking place below the surface. Airline troubles and fuel rationing could be the early warning sign for serious storms ahead. The longer we pretend that everything is 'business as usual' in regards to energy availability and consumption, the more vulnerable we will be when reality sets in."
Litle made a name for himself by implementing sophisticated trading and hedging strategies for clients on a global scale - a broad cross section including soybean farmers, cattle ranchers, currency hedgers, energy consultants and scrap metal dealers. He has worked with hedge funds, traded equities for a private partnership, written multiple articles for Futures Magazine, been quoted in the Wall Street Journal, and has been sought for market commentary by the likes of Reuters and Dow Jones.
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