Hurricane Sandy is causing a lot of trouble for drivers along the Eastern seaboard as bridges and tunnels in numerous cities are shut down in response to critical weather forecasts, but don't think that closures and delays are the only inconveniences Sandy is capable of.
According to reports from Bloomberg, gasoline has steadily rose for a third day as Hurricane Sandy continues to wreak havoc along the East Coast. According to Forbes, 6.5 percent of the nation's refining capacity lie in the wake of Hurricane Sandy's trajectory. New Jersey refineries including Phillips 66, NuStar Energy LP and Hess Corp. have either shut down operations or have reduced output as a precaution to a storm unlike anything that has hit the region in a century. Tight supplies will no doubt cause gas to once again surge to new highs.
According to Solaris Group LLC chief investment officer Timothy Ghriskey, "It won't bring the world economy to an end, but volume should be slower than usual."
By 2:23 p.m. today, gasoline futures have jumped nearly 2.6 percent. Beyond gasoline, ten-year treasury notes also dropped by three basis points to just 1.72 percent.
According to Dominick Chirichella, a senior partner of Energy Management Institute in New York, "For today the downward pressure from the slowing global economy will move to the background as Sandy and the impact it could have to the most populated portion of the U.S. evolves over the next several days."
Responding to the pressure, U.S. stock and bond markets will be closed Monday and Tuesday.
