Brent crude oil slipped below $109 on Monday morning, as the U.S. prepared for Hurricane Sandy. The storm, expected to hit the East coast of the U.S. late Monday or early Tuesday, could be the largest storm in US history. Dubbed “Frankenstorm," Hurricane Sandy is expected to produce 85 mph winds and meteorologists have warned that New York City could face an 11 foot wall of water.
Reuters reported that in preparation, most U.S. refineries on the east coast have shut down. This includes New Jersey plant Phillips 66 (NYSE: PSX), the second largest in the country. The shutdown is expected to create a build-up in crude stockpiles, driving prices lower.
As the storm moves closer, investors will have their eyes on reports of damage to infrastructure in the energy sector, namely refineries. The severity of the storm and length of the refineries' shutdowns will determine the effect on Brent prices.
Also driving prices downward is the reopening of Buzzard Oil Field in the North Sea. The factory has been closed for maintenance over the last few months, but is expected to restart production on Monday. Once open, officials expect the oil field to increase production over the next two weeks, until it has reached its previous output level before the maintenance started.
In a market where oil demand is declining among struggling economies, this new surplus is likely to drive prices down. Between Europe's financial crisis and slow recoveries in both China and the U.S., most analysts believe that the market's demand will not be able to absorb the influx of new supply.
BY Laura Brodbeck
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Português (Portugal)
- Polski
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
Brent Price Slips Ahead Of Hurricane Sandy
Published 10/29/2012, 09:33 AM
Updated 05/14/2017, 06:45 AM
Brent Price Slips Ahead Of Hurricane Sandy
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.