Major US East Coast refineries have begun to shut down as the Category 1 Hurricane Sandy continues to approach the US, bringing with it the potential for major power cuts and dangerous storm surge flooding throughout the US East Coast.
Refineries were not the only major enterprise to shut down, however; All equity trading in US markets was cancelled as Sandy stole the limelight from the global economy: “For today the downward pressure from the slowing global economy will move to the background as Sandy and the impact it could have to the most populated portion of the US evolves over the next several days.”
The price of crude oil has also fallen in anticipation of reduced demand. US Crude fell to below US$ 86 on Monday afternoon. Carl Larry, Oil Outlooks and Opinions was quoted as saying, “We’re going to get some bad weather somewhere in the US because of Hurricane Sandy and that’s not good for demand.” New York City, the most heavily populated city in the US is expected to receive the brunt of the storm.
Brent Crude was also impacted and fell by 29 cents to US$ 109.27 per bbl.
Edited from various sources by David Bizley