a lot of spec larts have moved in trying to take advantage of this event. so now we have to watch for this weekend. because this is a significant event, obviously. now, we re talking about one-third of every barrel of crude oil that is refined in the united states is now in the direct path of harvey. when we factor in the refinery assets along the louisiana coast and the potential tropical storm and flooding issues that persist there, then we re talking about 4 out of every 7 barrels of refining capacity and this is refining capacity east of the rockies. so farce the new york america tile exchange is concerned, this is what we are concerned with. so now we know this event has been priced in. lounge, how much higher prices can go is now really going to depend on we ve had an orderly shutdown of the capacity, of the industry. so that s all well and good. now we have to watch the wind events, the flooding events. if we have in sert of prolonged shut in of these refineries, then clearly th
refinery assets came under threat occurred back in 2008 when we had hurricane ike in the middle of august and two weeks later we had hurricane gust off. it came right into the heart of the center. and what happened, and this is interesting, ali, is in between august 15th and about the middle of september the crude oil contract on the new york america tile exchange dropped by 25% in price. but in the final four days when that contract went to expiration, it rallied 44%, and on the final day of trading, it went from a range of $103 all the way up to $130, a $27 barrel range. and this was a massive short squeeze. so what happened? and what happened there, ali, is the traders went back and look at what happened of the prior event, and of course, that would have been katrina in 2000 five. again, this was an event that was ultimately bearish for crude oil prices, bullish for product prices. and so they went ahead and they put the same trade on. but for the spec larts, they