Sandy Forces Refinery Shutdowns (PSX, HES, DAL)
We noted earlier this morning the possibility that crude oil refineries would either be forced to reduce production or shut down completely as Hurricane Sandy moves toward the coast and on inland. Those reports have now come true.
Phillips 66 (NYSE: PSX) has closed its 285,000 barrel a day refinery in New Jersey and Hess Corp. (NYSE: HES) expects to complete the shutdown of its 70,000 barrel a day plant as well. PBF Energy Inc. is operating is New Jersey and Delaware refineries at reduced rate. Each of the company's plants has a capacity of around 180,000 barrels a day. Delta Air Lines Co. (NYSE: DAL), which now owns a 185,000 barrel-a-day refinery in Pennsylvania is also running at reduced throughput rates.
While the slowdowns and shutdowns will have an significant impact on gasoline supply, it's worth remembering that demand will also slow way down. Until the storm passes later this week, not many people will be on the roads.
In electronic trading on the Intercontinental Exchange in London, WTI crude is down about 0.6%, at $85.78 a barrel and Brent crude is up about 0.2% at $109.72.
Filed under: 24/7 Wall St. Wire, Commodities, Oil & Gas Tagged: DAL, HES, PSX