Oil rises in price at trading on Monday on the news that the American Colonial Pipeline, attacked by hackers, continues to stand idle, and attempts to resume its work have not yet led to success.
The largest US pipeline for transporting petroleum products, pumping 2.5 million barrels a day from Texas along the east coast to New York, was cyber-hacked on Saturday, forcing US authorities to impose a state of emergency in seven states.
As of Monday morning, the 5.5 thousand-mile main fuel line was still out of service, and the operator was able to resume pumping only a few minor lines.
“The news about the Colonial Pipeline is pushing oil prices up,” said Jeffrey Haley, an OANDA analyst. At 15.16 Moscow time, July futures for Brent rose in price by 1.05%, to $ 69 per barrel. WTI contracts in New York are concluded at $ 65.53 a barrel, up 0.99%.
The pipeline supplies 45% of the gasoline, diesel and jet fuel consumption on the east coast of the United States. Its prolonged downtime “will have long-term implications for the market not only in the US, but also in Europe,” Commerzbank analyst Carsten Fritsch told Reuters.
So far, however, the market is not set for such a scenario, and the baseline forecast is that pumping will resume in the near future, he adds.
However, fears of fuel shortages have already inflated prices. US gasoline futures jumped more than 3% to $ 2.217 a gallon on Monday.
The Colonial Pipeline network serves more than 50 million people, as well as US airports, including Hartsfield-Jackson in Atlanta. Although the US Department of Energy can use the strategic reserve, its reserves in the northeast are only 1 million barrels, according to analysts at ClearView Energy Partners.