Colonial Pipeline: East Coast Faces Fuel Shortage Threat

(Bloomberg) -- Motorists from New York to Atlanta face a growing threat of fuel shortages and surging prices as a cyberattack that crippled North America’s biggest petroleum pipeline drags into its third day. Colonial Pipeline said on Sunday that it was still developing a plan for restarting the nation’s largest fuel pipeline -- a critical source of supply for the New York region -- and would only bring it back when “safe to do so, and in full compliance with the approval of all federal regulations.” Gasoline futures on Nymex surged by as much as 4.2% in trading overnight. The attack comes just as the nation’s energy industry is preparing to meet stronger fuel demand from summer travel. Americans are once again commuting to the office, planning major travel for the first time and booking flights. A prolonged disruption along the pipeline system threatens to send average U.S. gasoline retail prices above $3 a gallon for the first time since October 2014, further stoking fears of inflation as commodity prices rally worldwide. Gasoline for June delivery was 0.6% higher at $2.14 a gallon at 9:48 a.m. in New York. Futures prices have gained 40% this year, helped by the recovery from the worst effects of the pandemic. Source