Oil prices rose after kiberatak on the COLONIAL PIPELINE pipeline in the USA and interruptions in its work. During the trading on Monday, May 10, the reference Brent has risen up to 68.91 dollars per barrel. This is evidenced by the data of the London Stock Exchange ICE.
Growth and price WTI: June futures rose up to 65.43 dollars per barrel. Following the last week, Brent has risen by 2.3 percent, WTI is 2.1 percent.
Reason for the growth of hydrocarbon prices – Cyberatka on the COLONIAL PIPELINE Pipeline, through which about 45 percent of gasoline and diesel fuel consumed on the east coast of the United States. It occurred on May 7, and the work was not yet restored.
Presumably, the attack made a grouping Darkside. She is known for not attacking state institutions and social facilities, large companies that can pay a large ransom are becoming victims. Also, the agency approves, Darkside prefers to avoid goals in the post-Soviet space.
Pipeline has been closed for several days, and it causes the analysts to concern about the supply of fuel. As the New York Times wrote, the stop can lead to price increases and fuel deficiency: gasoline, diesel fuel and aircraft. According to the executive director of Infrastructure Capital Management Jay Hatfield, the price per gallon can grow up to $ 3, which has not been since 2014.
Colonial Pipeline, Pipeline operator, said on Sunday afternoon, that he develops a “system restart plan” and restores the maintenance of some small lines between the terminals and delivery points. However, it is not yet about the full renewal of work. Colonial manages the largest pipeline of petroleum products in the country and transports 2.5 million barrels per day.
According to Rydger’s analyst, the restart period is crucial. In a conversation with CNBC, he voiced several possible options for developing events. If the work of the pipeline resumes the middle of the week, there will be no serious problems from this. If the blocking lasts up to 10 days, the oil refineries will have to reduce the production of crude oil. According to the analyst, reserves on the coast of the Gulf of Mexico in the United States will grow, which will lead to a fall in prices, while prices on the east coast will grow. The third option, implies a stop by more than 10 days. In this case, the deficit may begin. “Expect a significant fuel deficit in the inner areas of the southeast of the United States,” the analyst stated.