As far as the refineries in the Northeast, we will be waiting to hear about damage reports and then the next question will be when the power can get back on. Reuters is reporting U.S. refinery and pipeline companies that nearly halted East Coast fuel supplies ahead of Hurricane Sandy will begin assessing the storm's damage on Tuesday, hoping that their flood defenses and on-site power will allow a quick return to service. Three of the area's six key refineries — including the two largest — effectively shut down operations in advance of landfall Monday evening for the Atlantic storm. Two more reduced operating rates, curtailing at least two-thirds of the region's capacity.
Major ports that supply the area with some 1 million barrels per day (bpd) of imported fuel were also shut, while the northern leg of the Colonial Pipeline from the Gulf Coast was idled. It supplies as much as 15 percent of the East Coast's 5.2 million bpd of gasoline, diesel and fuel demand.
As Sandy's up to 90 mile per hour winds slow over land and its 13-foot storm surge subsides, operators such as Phillips 66 and PBF Energy will assess any damage to their facilities, and will start making plans for restoring operations — a delicate process in the best of times.
If damage is limited, many experts say fuel supplies should resume within a few days, potentially reversing the three-day, 6% rally in benchmark New York harbor gasoline futures as traders shift their focus from the threat of a supply squeeze to the loss of demand from airport and road closures.