Crude Oil Declines as Hurricane Sandy Reduces Consumption
Crude oil fell yesterday and kept its losses today as refineries closed due to the threat of Hurricane Sandy. In the longer term, the storm may prove beneficial for oil prices as it will likely disrupt supply. In the short term, though, it reduced consumption, hurting prices.
The hurricane also damaged the general market sentiment. US stock markets were closed and that spurred risk aversion amid traders. Most commodities were down and crude was not an exception.
Crude oil (light sweet) fell from $85.91 to $85.25 per barrel on NYMEX yesterday and traded near that level today. Brent crude fell $0.44 (0.40 percent) to $109.00 per barrel on ICE.
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