Will Sandy raise the price of gasoline?
Wednesday, October 31, 2012 2:08 PM
Concerns that superstorm Sandy may interrupt short-term oil supplies are driving up oil prices, reports MSN Money.
In Europe, those concerns pushed benchmark crude for December delivery up 65 cents to $86.33 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose to $85.68 a barrel in New York.
Widespread power outages and transportation disruptions, and hazardous driving conditions along the storm-affected East Coast are expected to reduce demand for energy. But analysts said imports of crude oil also likely will 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.
Earlier this month MSN Money reported that gasoline prices dropped 3.8 percent in October to a national average of $3.67 per gallon and could fall another 30 cents by Thanksgiving. The average price in Iowa is $3.37 according toDesMoinesGasPrices.com.
Analysts said it is too soon to judge the long-term effect Sandy will have on oil prices.