Oil prices rise on Superstorm Sandy threat
Wednesday 31 October 2012
Oil prices rose today after a Superstorm Sandy caused havoc across the north-eastern US and threatened to inflict more damage inland.
Concerns about oil supplies pushed benchmark crude for December delivery up 78 cents to 86.46 dollars per barrel in late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. The contract rose 14 cents to finish at 85.68 dollars a barrel in New York.
Brent crude, used to price many international varieties of oil, rose 46 cents to 109.54 dollars per barrel.
A hurricane which evolved into a winter superstorm, Sandy cut power to more than eight million homes, shut down 70% of east coast oil refineries and inflicted worse-than-expected damage in the New York metropolitan area. That area produces about 10% of US economic output.
Sandy came ashore on Monday evening in New Jersey, dumped heavy rain inland in Pennsylvania yesterday and was expected to turn towards New York state and Canada overnight.
The storm will end up causing about 20 billion dollars in property damages and 10 billion dollars to 30 billion dollars more in lost business, according to IHS Global Insight, a forecasting firm.
Widespread power cuts and transportation disruptions, and hazardous driving conditions would probably reduce demand for energy. But analysts said crude imports were likely to be reduced until east coast ports reopen.
"So even if refineries were able to get up and running soon, there's a good chance we won't have the feedstock to keep them going," said Carl Larry of Oil Outlooks and Opinions.
The Nymex was closed yesterday because of the storm, but electronic trading continued. Normal trading is expected to resume today.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Greece debt crisis explained: A history of just how the country landed itself in such a mess
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Greek debt crisis: Yanis Varoufakis's funniest (and most memorable) quotes
- 5 The biggest first date turnoff has been revealed
Greece debt crisis explained: A history of just how the country landed itself in such a mess
Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
Man dies instantly after shooting firework from top of his head
Isis schoolgirl Amira Abase who fled London to join terrorists in Syria mocks victims of Tunisia massacre
Father faces deportation to Thailand after 27 years in Britain for two 'stupid crimes'
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...