Tags: | Sandy | gas | prices | higher

Sandy Might Push Gas Prices Higher, but Perhaps Not for Long

By    |   Tuesday, 30 Oct 2012 09:45 AM

Super-storm Sandy could push gasoline prices higher, as refineries go out of commission.

But the resumption of refinery activity should combine later with a slump in demand, as drivers stay off the streets in storm-ravaged areas, to pull gas prices back down, experts say.

Even before the storm struck in earnest Monday night, many east coast refineries slowed their activity or shut down, and storm damage could shutter them for several days.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

Meanwhile, refinery capacity has shrunk in the region and in Europe amid the industry’s difficult economics.

"We don't have the fallback we had during Hurricane Katrina," energy analyst Stephen Schork tells CNNMoney.

Some analysts say gas prices could rise to $4 nationally, a 13 percent increase from Monday’s U.S. average of $3.54.

But slack demand for gas from drivers should help to keep that move temporary. "My read is that this storm is going to be one of the biggest demand destroyers in my lifetime,” Tom Kloza, chief analyst at the Oil Price Information Service, tells CNNMoney.

Gas prices have dropped 6 percent in the last month.

"I wouldn't be surprised over the next day or two to see the price in some Northeastern states move a little bit higher,” AAA spokesman Avery Ash tells USA Today.

“However, these are likely to be blips. Once refineries come back online and distribution issues are worked out, we anticipate prices returning to their decline."

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Super-storm Sandy could push gasoline prices higher, as refineries go out of commission. But the resumption of refinery activity should combine later with a slump in demand, as drivers stay off the streets in storm-ravaged areas, to pull gas prices back down, experts say.
Sandy,gas,prices,higher
260
2012-45-30
Tuesday, 30 Oct 2012 09:45 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved