Colonial Pipeline Still Shutdown After Hacking Attack
May 10, 2021
The news of the weekend has been the shutdown of the Colonial Pipeline. Last Thursday hackers stole data and locked computer with ransomware which lead to the shutdown of the pipeline on Friday. Most traders are hoping for a short time frame before the pipeline returns to operation. Colonial reported yesterday that some of the lateral lines are back in operation which is hopefully a good sign. Prices did open higher at the start of Sunday night trading. NYMEX RBOB gasoline futures closed on Friday at $2.1269 and price jumped to $2.2169 for the high today so far at the open Sunday Night which is a $0.09 cents increase. NYMEX RBOB futures are currently showing trading up $0.03 cents. The story will be watched to see how long operation remand shut down with most saying that after 5 days it will make the situation more critical. Beyond that time frame and the market will see imports from Europe into the East Coast, a likely waiver of the Jones Act to allow all ships to haul from the Gulf Coast to the East Coast. An exemption for truck drives to work extended hours has been put in place for most state on the East Coast to allow for more time to haul product from other areas. This does bear watching and the longer it drags on the more serious it could become. Some reports this morning are indicating that the Biden Administration may have already allowed for the Jones Act waiver.