Oil was down in Asia today as crude supply was bolstered by the resumption of operations by refineries on the US east coast following superstorm Sandy, analysts said.
New York’s main contract, light sweet crude for December delivery, shed 27 cents to $85.97 a barrel and Brent North Sea crude for delivery in December dipped 34 cents to $108.36.
Crude prices fell “as several key east coast refineries and pipelines restored operations and traders bet on an enormous hit to demand for fuel,” Phillip Futures said in a report.
Refineries, together with the New York Stock Exchange and Nasdaq exchange, had shut before Sandy struck but resumed business yesterday despite widespread power outages.
However, downstream energy demand was expected to remain weak for several days as authorities struggled to repair damage.
US media reports said 63 Americans had been confirmed dead across 15 storm-ravaged states, bringing Sandy’s overall toll to 135 including Canada and the Caribbean, where Haiti and Cuba were hit particularly hard.