Oil Prices Rise amidst Closure of Major Fuel Pipeline in U.S
Oil prices rise over the closure of the United States crucial and largest fuel pipelines due to the recent cyber-attack, raising concerns about the fragility of the country’s energy infrastructure.
Some oil traders told MarketForces Africa via email that cyber-attack development may halt the positive outlook due to the fact that demand from India has hit the bottom.
Early on Monday, international benchmark Brent crude was trading at $68.88 per barrel earlier on Monday, jumps 0.88% after closing Friday at $68.28 a barrel.
American benchmark West Texas Intermediate (WTI) was at $65.46 per barrel at the same time for a 0.86% rise after it ended the previous session at $64.90 a barrel.
The Colonial Pipeline, which carries 2.5 million barrels a day of diesel, gasoline, and jet fuel, was completely knocked offline by a cyber-attack on Friday, and work is still ongoing to restore service.
The US government also issued emergency legislation on Sunday and a total of 18 states have been granted a temporary hours of service waiver to transport gasoline, diesel, jet fuel and other refined petroleum products by road.
The Colonial Pipeline Company said on Sunday that while the main lines remain offline, some smaller lateral lines between terminals and delivery points are now operational.
Oil prices also found support from the easing of COVID-19 restrictions in the US and Europe, as more travel in the upcoming summer season is expected to boost demand.
Oil Prices Rise as IEA Forecasts 6% Increase in Global Demand
Spain’s state of emergency was lifted on Sunday, putting an end to nightly curfews for the vast majority of Spaniards and allowing travel across the country for the first time in more than six months.
However, the worrisome increase in coronavirus cases in Asian countries, especially in India, continues to curb demand.
Oil Prices Rise amidst Closure of Major Fuel Pipeline in U.S
