Tuesday, August 31, 2010

Phil Flynn: The Hurricane Threat!

Many oil traders when they think about the impact of hurricanes on the oil market most often focus on the threat to supply. Yet the truth is more often than not hurricanes are more of a threat to demand then they are to supply. That is definitely the case when it comes to Hurricane Earl, not to mention tropical storm Fiona, Hurricane Danielle and a storm to be named later. Earl in particular could do major demand destruction as its path is perilously close to the East Coast.

Earl currently is a category 4 hurricane and is expected to graze the tip of North Carolina on Friday at 2 am just as vacationers are planning to arrive for the big three day Labor Day holiday weekend. I am sure many looking at the weather maps may be canceling their plans already as many will not want to chance the storm. In fact cancelation may become more prevalent as storm warnings all up and down the East coast may cause vacationers and beach lovers to stay closer to home! Hurricane Earl could just destroy a lot of holiday weekend travel plans and the gasoline demand that was expected. The oil and gas market was expecting.....Read the entire article.

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