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MTECHTIPS:-Brent hovers near $109; recovery eyed post Sandy
Brent crude held steady near $109 a barrel on Wednesday after the huge storm Sandywhiplashed the U.S. East Coast, reducing fuel demand even as refineries in the region gradually resumed operation. Fuel supply in the storm-hit region is expected to bounce back quickly as most refineries emerged unscathed, but demand was likely to take a much bigger knock as roads and airports remained shut. Brent crude for December delivery was down 1 cent at $109.07 by 0441 GMT. The front-month contract is set to post its largest monthly fall since June as concerns about a global economic slowdown outweighed supply risks in the Middle East. U.S. crude for December edged up 19 cents to $85.87, on track for the biggest monthly loss since May. "We may have a rapid return of supply but the demand will be slower to recover," Tony Nunan, a risk manager at Mitsubishi Corp, said. Millions of people were left reeling in the aftermath of the winds and heavy rains of the massive storm on Tuesday, as New York City and many parts of the eastern United States struggled with flooding and extensive power outages. "This is really the last thing that the U.S. needed," Nunan said, adding that Americans without insurance to cover storm damages would have less spare cash to spend just as the world's largest economy was showing signs of recovery. The region's biggest refinery, in Philadelphia, and several others, were ramping up operations on Tuesday after escaping damage. But flooding at the region's second-largest refinery, PhillipsBSE 1.60 % 66's 238,000 barrel-per-day plant in Bayway, New Jersey, plus power glitches at two other plants and a key New Jersey terminal hub, slowed the recovery in fuel supplies.
Brent crude held steady near $109 a barrel on Wednesday after the huge storm Sandywhiplashed the U.S. East Coast, reducing fuel demand even as refineries in the region gradually resumed operation. Fuel supply in the storm-hit region is expected to bounce back quickly as most refineries emerged unscathed, but demand was likely to take a much bigger knock as roads and airports remained shut. Brent crude for December delivery was down 1 cent at $109.07 by 0441 GMT. The front-month contract is set to post its largest monthly fall since June as concerns about a global economic slowdown outweighed supply risks in the Middle East. U.S. crude for December edged up 19 cents to $85.87, on track for the biggest monthly loss since May. "We may have a rapid return of supply but the demand will be slower to recover," Tony Nunan, a risk manager at Mitsubishi Corp, said. Millions of people were left reeling in the aftermath of the winds and heavy rains of the massive storm on Tuesday, as New York City and many parts of the eastern United States struggled with flooding and extensive power outages. "This is really the last thing that the U.S. needed," Nunan said, adding that Americans without insurance to cover storm damages would have less spare cash to spend just as the world's largest economy was showing signs of recovery. The region's biggest refinery, in Philadelphia, and several others, were ramping up operations on Tuesday after escaping damage. But flooding at the region's second-largest refinery, PhillipsBSE 1.60 % 66's 238,000 barrel-per-day plant in Bayway, New Jersey, plus power glitches at two other plants and a key New Jersey terminal hub, slowed the recovery in fuel supplies.
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