Will Sandy affect gasoline prices?
It might seem hard to believe, but some experts say an extreme drop in demand along the East Coast could decrease prices at the pump.
Just when gas prices were starting to calm down, along comes Sandy to throw the sector into rain-soaked turmoil.
Although some parts of the East Coast saw the price of gas spike over the weekend and Monday, it's very likely that Sandy will cause prices to fall. That's because no one wants to be out driving in the pouring rain and heavy wind, so demand will see a sudden and intense drop.
But there are a few more pieces to this puzzle. Fuel deliveries have also slowed to a crawl, which may cause some shortages. Also affecting supply are refinery closures along the East Coast. About 70% of the refiners in the region are expected to close, but Reuters reports that as checks begin, the biggest East Coast refiner in Philadelphia appears unharmed.
The Phillips 66 Bayway refinery in Linden, N.J. lost power late Monday. The No. 2 refinery on the East Coast had already shut down operations, Reuters reports. Power is expected to be restored within the next two days.
East Coast refineries don't produce much gasoline for the U.S. CBS News reports that the refineries contribute just 6.5% of the country's gas supply. In fact, the Northeast needs to bring in gas from the Midwest, the Gulf region and other countries to keep up with demand.
So the general consensus is that yes, supply will take a hit, but demand will likely take an even bigger hit.
The price of gas nationwide has fallen every day since Oct. 8, Bloomberg reports. The average price for a gallon Monday was $3.53, AAA reported, down 25 cents from a month ago.
"We were on a steady road toward cheaper U.S. gasoline prices nationwide," Tom Kloza, chief oil analyst at the Oil Price Information Service, told MarketWatch Monday. "Prices will resume a strong downward bias in November."
AAA says that gas prices are forecast to fall this week and through the Thanksgiving holiday, according to The Christian Science Monitor.
More from Top Stocks
- Hurricane blows into stock market history
- Will megastorm be another earnings excuse?
- Analysts ponder Sandy's financial impact
Is this a joke? History says gas price will go up. Every excuse will be use to raise gas price.
Wake up everyone and learn about one of the biggest lies told to people. Look up abiotic oil. Oil is NOT fossil fuel. It is not made by living material after thousands and millions of years. We will not run out. The earth takes in Hydrogen and puts out this abiotic oil. Oil that is made from inorganic material. The price of oil was decided to be manipulated indefinitely during the Rockefeller meeting in the late 1800's. If you go back to a empty oil well a few decades later, you will find OIL again. If you think it is actually made from fossils, why on earth do we drill so much at depths that geologists will tell you is absolutely too low to find fossilized creatures?
Educate yourselves. Keep Calm. Spread Truth.
Obama Curtails Drilling in Oil-Rich Alaskan Reserve
The Obama administration, citing environmental concerns, has banned drilling on half of the vast National Petroleum Reserve-Alaska in a move decried even by Alaska’s congressional delegation.
“The price of gasoline, which was $1.84 a gallon the day President Obama took office, has more than doubled since, willfully aided and abetted by an administration that claims we can't drill our way to energy independence as we ignore vast reserves of North American energy that dwarf OPEC's and we sit on 100 years' supply of petroleum,” Investor’s Business Daily (IBD) stated in an editorial.
The National Petroleum Reserve-Alaska (NPRA), not to be confused with the Arctic National Wildlife Refuge (ANWR) to the east, is a 23.5-million-acre, Indiana-sized tract on Alaska’s North Slope. It was established by President Harding in 1923 to ensure oil supplies for the U.S. Navy.
You asked, will the storm affect gas prces? Can a cat scratch? The motorist and every
consumer is at the hands of the greedy. We are the puppets being manipulated by the
ONE QUESTIONTHAT NEVER GETS ASKED, " WHERE DOES THE ELECTRIC COME FROM TO CHARGE THE CAR BATTERIES?" 80% COMES FROM COAL............IF WE CANT MINE COAL (OBAMA IS KILLING THAT INDUSTRY IN WVA.) THEN I GUESS WE BURN OIL TO CREATE THE ELECTRICITY TO CHARGE THE CAR BATTERIES............THE CIRCLE IS NOW COMPLETE!
What have we learned from 911 ? The complete countires markets shut down because of a small portion of the country is affected by bad weather ????
And our economy will change ?
ENERGY PLAN!!! ELECTRIC CARS, SOLAR PANELS, WIND TURBINES,
ALGAE AND OTHER GREAT GREEN ENERGY! OH THAT'S RIGHT THEY DON'T!
MOST DON'T EXIST AND IF THEY DO DON'T WORK AND COST MORE AND
ALL THAT STIMULUS MONEY WENT TO BIG UNIONS AND SOYLANDRA AND
FRIENDS AND FAMILY! MAYBE THEY CAN BUY SOME CHEVY VOLTS AND RUN
ELECTRICITY FROM THOSE GREAT ELECTRIC CAR BATTERIES THAT RUN ON
MAGIC ENERGY! HE SHUT DOWN CHEAP ENERGY ALL ACROSS AMERICA!
HOW YOU LIKE IT NOW? LOUISIANA HAS LOST THOUSANDS OF JOBS! THANX OBAMA!
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The photo-sharing site only has 10 employees, and it may be up for grabs.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.