Oil prices rose Wednesday after a superstorm Sandy, that caused havoc across the northeastern U.S. and was threatening to inflict more damage inland. As per Economictimes, concerns about oil supplies pushed benchmark crude for December delivery up to US$85.8 per barrel on the Nymex, while Brent crude dipped to US$108.9 per barrel. Widespread power outages and transportation disruptions, and hazardous driving conditions road would likely reduce demand for commodities like gasoline. But analysts said crude imports likely will be reduced until East Coast ports reopen.
Sandy cut power to more than 8 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 U.S. economic output. The storm is expected to end up causing about US$20 bln in property damages and US$10-30 bln more in lost business, according to IHS Global Insight.