Oil prices end the week on a weaker note as refineries remain shut after Sandy

05-Nov-12

Oil on the Nymex plunged by over two dollars to close at US$84.86 — its lowest level since July 10. Brent crude also plunged by over two dollars to US$105.73 in London. Oil plunged to its lowest point in almost four months at the end of last week. Two refineries in the countries Northeast region with the capacity to refine almost 310,000 bpd of oil continue to remain shut. Philadelphia Energy Solution’s Philadelphia refinery complex, the largest in the Northeast, has been restarted along with other refineries in the path of the storm. But the delivery of fuel throughout the New York area continues to be stifled by the severe damage and power outages left in the wake of the storm. Additionally, regions struck by Sandy have seen dwindled demand for gasoline and diesel. It is likely that the nation’s ample supply will not be dwindling in the days to come. Transport hurdles restrict the movement of oil to demand regions. Job figures from USA have been encouraging- The Labor Department said that employers added 171,000 jobs last month and that hiring in August and September was better than first reported. That suggests the slow economic recovery remains on track.