Gasoline Prices Retreat After Colonial Pipeline Says Gradually Restoring Service Following Cyberattack
03:54 PM EDT, 05/10/2021 (MT Newswires) -- Oil prices fell after Colonial Pipeline said it was restroring service on the key Eastern US motor fuel distribution network in "stepwise fashion" after it was shut down Friday following a cyberattack.
NYMEX RBOB gasoline June futures gave back all of intraday gains of as much as 4% above Friday's close, which followed a ransomware attack on the pipeline's computers widely attributed by US government sources to hackers based in Eastern Europe.
Colonial said it is working in cnsultation with the Department of Energy to restore service on the 5,500-mile pipeline network supplying some 45% of the US East Coast's gasoline and diesel fuel.
The company is continuing to evaluate inventory in storage tanks and working with shippers to move it to terminals for local delivery, it said.
The federal government's decision to issue "a temporary hours of service exemption for motor carriers and drivers transporting refined products across Colonial's footprint should help alleviate local supply disruptions," Colonial said.