From the Washington Post:

Oil prices surged yesterday and gasoline prices were poised to top $3 a gallon by Labor Day weekend as oil companies and federal officials began assessing Hurricane Katrina's damage to the heart of the nation's energy production...

U.S. benchmark crude oil priced for October delivery rose more than $3 a barrel to trade as high as $70.90 on the New York Mercantile Exchange before closing at $69.81.

Wholesale gasoline prices surged to levels that, if sustained, will translate to more than $3 a gallon at the pump within days, after typical retail markups are added, analysts said.

Stock prices fell as investors anticipated that higher energy costs will dampen consumer spending and corporate profit.