Oil’s climb as a result of Hurricane Sandy reversed a declining trend in prices since May. As refineries reopened, analysts concluded that the shutdown of seven refineries with a total capacity of 1.29 million barrels per day would not have negative effects on supply.
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Instead, Sandy may have greater negative effects on demand. The Energy Department postponed the released of its inventory report at least until tomorrow depending on the extend of storm damage and delays.
The report may show that supplies of crude increased by 1.75 million barrels last week based on nine analysts’ responses to a Bloomberg survey.
Floor trading on the Nymex resumed on Wednesday after being closed for two days because of the storm. Futures settled above the lower Bollinger Band
on Tuesday for the third time in four days signaling technical support.
Buy orders tended to be clustered around that support level. For the month of October, futures are down 6.4%. They are down 12.7% so far in 2012.