Superstorm Sandy will reduce demand for gasoline and jet fuel as the U.S. East Coast lacks electricity, while it largely spared the region’s energy infrastructure, according to Deutsche Bank AG.
“With much of the East Coast energy infrastructure generally unscathed by Hurricane Sandy, focus has now shifted to concerns about the dampening impact the storm may have on demand,” analysts led by Xiao Fu in London said in an e-mailed report today. “With so much of the densely populated eastern region affected by the storm and still lacking power, demand is expected to slip in the immediate aftermath.”
Demand for gasoline and jet fuel was most affected by past storms that struck the East Coast, Deutsche Bank said, citing Hurricane Irene in August 2011 and Hurricane Gloria in September 1985. Gasoline consumption declined two to three times more than average, the analysts said.