Fuel prices are spiking as one of the largest pipelines in the U.S. remains closed following a cybersecurity attack over the weekend.
Gasoline prices rose 1.4% to $2.156 U.S. per gallon, while heating oil futures rose 0.8% to $2.03 U.S. Prices for West Texas Intermediate crude, the U.S. oil benchmark, advanced 0.5% to $65.24 U.S. per barrel.
The price increases came after Colonial Pipeline said Sunday (May 9) that some of its smaller lateral lines between terminals and delivery points are once again online, but that its main lines are still shut down after a cyberattack.
"We are in the process of restoring service to other laterals and will bring our full system back online only when we believe it is safe to do so, and in full compliance with the approval of all federal regulations," the company said in a written statement.
Colonial Pipeline, which operates the largest pipeline carrying fuel from the Gulf Coast to the Northeast, "halted all pipeline operations" on Friday night as a proactive measure following a ransomware cyberattack.
The pipeline is a crucial part of U.S. petroleum infrastructure, transporting around 2.5 million barrels per day of gasoline, diesel fuel, heating oil and jet fuel. The pipeline encompasses more than 5,500 miles and carries nearly half of the East Coast’s fuel supply. The system also provides fuel for airports, including in Atlanta and Baltimore.
The pipeline outage comes as Americans are beginning to travel again as restrictions are lifted and the COVID-19 vaccination rollout accelerates. On May 7, 1.7 million passengers were screened at U.S. airport security checkpoints, the highest number in more than a year.
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