Oil prepares for Hurricane Sandy

Sandy, Cant You See?

As of now a tropical storm watch has been issued for parts of North Carolina as Hurricane Sandy approaches the U.S. East Coast, the National Hurricane Center said in an advisory issued Friday. The Category 1 storm was centered about 485 miles (780 kilometers) south-southeast of Charleston, South Carolina, with maximum sustained winds of around 80 miles per hour at 5 a.m. EDT (0900 GMT). The storm was moving toward the northwest at about 13 mph, the advisory said. "A little weakening is forecast today...but Sandy is expected to remain a hurricane for the next couple of days," the advisory said. Dow Jones reports that as Hurricane Sandy begins to make its way up the East Coast, Duke Energy is making preparations for possible effects from the storm in Florida and the Carolinas. Employees are monitoring the potential path of the storm and implementing early phases of the company's comprehensive storm plan.

Customers of Progress Energy Florida and Progress Energy Carolinas (Duke Energy subsidiaries) should pay particular attention to the storm, and review their own safety plans, as well. Current forecasts keep the storm offshore as it passes Florida and the Carolinas over the weekend, but there is potential for high wind and rain in areas along the coast that could result in outages in those areas. Given the size of the storm, portions of central North Carolina and South Carolina could also see effects from the outer bands of the storm, including portions of Duke Energy Carolinas service area. Duke Energy will continue to monitor and prepare for the storm and will deploy company crews as needed to restore service as safely and quickly as possible after the storm passes.

Northeast refineries and imports into the East Coast as what may be a “Perfect Storm” could create havoc unlike anything we have seen for 100 years! The summer like hurricane storm crashing into a winter storm around Halloween is about as scary as any Halloween story I have ever heard. Bloomberg News reminds us that East Coast, or Padd 1, gasoline supplies were 9.1% below year-earlier levels last week, Energy Department data show. The East- Coast imported 471,000 barrels a day of gasoline last week, according to department data. Refiners in the region, which includes New York Harbor, the delivery point for Nymex futures, can process 1.29 million barrels a day, according to data compiled by Bloomberg.

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About the Author
Phil Flynn

Senior energy analyst at The PRICE Futures Group and a Fox Business Network contributor. He is one of the world's leading market analysts, providing individual investors, professional traders, and institutions with up-to-the-minute investment and risk management insight into global petroleum, gasoline, and energy markets. His precise and timely forecasts have come to be in great demand by industry and media worldwide and his impressive career goes back almost three decades, gaining attention with his market calls and energetic personality as writer of The Energy Report. You can contact Phil by phone at (888) 264-5665 or by email at pflynn@pricegroup.com. Learn even more on our website at www.pricegroup.com.

 

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