Refineries Shut Down Ahead of Hurricane Sandy

FILE - In this Tuesday, July 26, 2011 file photo, Ben Shaw hangs from an oil derrick outside of Williston, N.D. U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world's biggest producer. U.S. production of oil and other liquid hydrocarbons is on track to rise 7 percent in 2012 to an average of 10.9 million barrels per day. It's the fourth straight year of crude increases, and this year drillers are on track to post the biggest single year gain since 1951. (AP Photo/Gregory Bull, File)
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Oil refineries on the East Coast of the U.S. are shutting down or throttling back in advance of a massive storm.
A Philadelphia refinery that is the biggest on the East Coast was scaling back. And the second-biggest East Coast refinery, a Phillips 66 operation in Linden, N.J., is shut down.
Oil prices have not moved much. They're down 30 cents to $85.98 in morning trading on the New York Mercantile Exchange.
Traders are balancing two big risks. One is that the storm will damage refineries, , which normally would drive up gasoline prices. But, businesses are shutting down and people are staying home, which would reduce gasoline demand -- and prices.
Nationally, gasoline prices at the pump fell a half-penny from Sunday, to $3.453 per gallon.



 
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