You're watching...
The Schork Report’s Stephen Schork on a tank rupture that caused 277K gallons of diesel to spill into New Jersey and New York waterways.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
And to make matters even worse the storm is also called and caused an oil spill in the Arthur kill waterway in New Jersey.
Which officials are still trying to clean up it in the midst of all of this.
A diesel tank where somebody night dumping about 277000.
Gallons of fuel.
We now need to tell you this is feel that drivers can be using -- gas of their cars right now and it is floating off the coast of New Jersey.
This could have an impact on prices and supply in the New York area let's bring in Stephen -- He -- -- -- report he joins me for more on this so tell me about this bill I mean how did it happen and and this is feel we need it.
Well absolutely it happened Monday night one Obama achieve its tanks -- -- TV is a joint venture between shell and Saudi aramco.
What -- their tents -- and -- spilled about 8000 barrels of diesel fuel into the Arthur kill.
Arthur kill it is a title -- watershed that connect Staten Island to New Jersey -- -- vital waterway.
So this just adds to -- logistical nightmare that is New York Harbor right now.
Melissa it's not necessarily question of refinery capacity -- -- there the gas means there.
This is an it infrastructure problem we have a problem getting the oil gasoline and diesel from where it is at the terminal two where needs to be -- the retailer right now.
We have -- navigational hazards in were -- markets in New York Harbor in Long Island Sound so we can't move barges we cannot move vessels yet.
We have power outages.
We have terminals being close -- can't pull the vessels up to the -- so that -- there are so I'm more in the camp I agree with your previous guess that this is a real logistical nightmare there are shortages induced by.
A lot of transportation the -- there it will get there but were probably got at least another week may be -- we really persisting.
Why how how sweet -- -- weeks.
I absolutely so now what is but it's really -- -- here is you're not seeing the reaction in the pricing.
He -- -- look at the term structure of the forward curve.
If that Britain what I can take away from this than the market is still judge in that this is a transitory problem it will be solved it will be solved within the next month.
I mean yesterday final day of October we had -- eighteen cent rise in gasoline prices in the futures expiration.
And -- fifteen cent crash so problem is now we got -- delivering or take delivery of the futures contracts that went to expiration yesterday.
But the terminals are open so there is a lot of maneuvering going back and forth all this uncertainty adds another unknown variable -- -- equation.
Is that it does create a scenario for higher prices but oddly enough and and fortunately enough we're just not seeing it yet.
Well there are a lot of dislocations that we'll see how the whole thing shakes out we have a map of the whole country but I think we can put up that shows.
On the pads across the US as we call them where the fuel is kind of divided into.
And I'm wondering if this is gonna have a domino back over time the yellow -- -- uranium part of the screen.
That's -- one and that's who we're seeing impacted by this shortage right now what I wonder is there -- domino effect could this start spilling over to the rest of the country.
As we steel fuel from other sources here on the East Coast.
Oh absolutely it certainly can I have a retail clock we -- -- I guess and station owner in Pittsburgh market analyst Robinson yesterday and he's fully expecting this.
Look commodities are very easy to follow from a price this perspective the price that you commodities gonna go to where ever the price is the highest -- so if you do have indeed a shortage of product in increased demand.
And what's happening now we have to keep in -- This supply issue is what it is but the demand issue is still muted right so we don't have the roads are closed and so forth so the demands there in the weeks ahead the demand will pick up.
That's when -- but you can start to see.
Markets robbing oil gas and as a war from other markets it certainly this is.
Has the potential to have a domino effect not just in the northeast region.
But certainly as we move back towards the midwest and into the southeast yeah I think -- Stephen thanks for coming on we --
