Gasoline falls on speculation superstorm Sandy will cut demand

BLOOMBERG FILE PHOTO/F. CARTER SMITH
GASOLINE PRICES fell on speculation that demand will decline on the U.S. East Coast after the devastation from Hurricane Sandy.
Posted 10/30/12

NEW YORK - Gasoline fell on speculation that demand will decline on the East Coast as Atlantic superstorm Sandy causes widespread flooding and power outages.

Futures sank as at least 3.6 million homes and businesses lost power yesterday, the U.S. Energy Department said. Philadelphia Energy Solutions said it is restoring normal operations at its 355,000-barrel-a-day refinery in Pennsylvania. The storm came ashore in southern New Jersey at 8 p.m. local time yesterday, driving floodwaters to life-threatening levels.

“It’s too early to tell if major damage was done to the refineries but we do know nobody is driving up and down the East Coast,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “This could be the biggest demand destruction event short-term. It will take time to get back to normal.”

Gasoline for November delivery fell 3.68 cents, or 1.3 percent, to $2.72 a gallon at 12:23 p.m. on the New York Mercantile Exchange. All trading was electronic as the Nymex floor is closed a second day for the storm.

Futures jumped 2.1 percent yesterday as six East Coast refineries accounting for 94 percent of regional processing capacity shut or reduced rates in advance of the storm, according to information from the companies and from the Energy Department. Terminals, ports and sections of product pipelines also shut.

“The market is falling in anticipation of the return of supply,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

Refinery Capacity

Refiners in the region, which includes New York Harbor, the delivery point for Nymex futures, can process 1.29 million barrels a day, according to data compiled by Bloomberg. East Coast, or Padd 1, gasoline supplies were 9.1 percent below year- earlier levels in the week ended Oct. 19, Energy Department data show.

Heating oil for November delivery fell 2.82 cents, or 0.9 percent, to $3.087 a gallon on the exchange.

The average nationwide price for regular gasoline at the pump declined 0.9 cent to $3.534 a gallon yesterday, AAA, the largest U.S. motoring organization, said today on its website. That’s the lowest level since Aug. 1. Prices have fallen every day since Oct. 10. The pump price reached a 2012 high of $3.936 on April 4.

Calendar
PBN Hosted
Events

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot early!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement