Katrina threatens to weaken economy.(Business)

Byline: JEANNINE AVERSA Associated Press

WASHINGTON - Surging energy prices and business disruptions from Hurricane Katrina, likely the costliest natural disaster in U.S. history, threaten to slow what has been a steadily expanding economy.

The powerful and deadly storm devastated much of the Gulf Coast area in the South, knocking out oil refineries, shuttering businesses and crippling the flow of commerce through ravaged ports.

While the damage has yet to be fully assessed, economists and other experts believe the disaster will rack up insured losses of up to $25 billion. That would surpass the $21 billion (in inflation-adjusted losses) from …