Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. fuel crisis eases as pipeline returns to normal after hack

Stock MarketsMay 15, 2021 10:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3/3 © Reuters. A plastic bag covering a fuel pump to signal no gas is available is seen at a gas station after a cyberattack crippled the biggest fuel pipeline in the country, run by Colonial Pipeline, in Lakeland, Florida, U.S. May 14, 2021. REUTERS/Octavio Jones 2/3

By Jennifer Hiller and Stephanie Kelly

(Reuters) -Widespread gasoline shortages along the U.S. East Coast began to ease slightly on Saturday as the operator of the nation's biggest fuel pipeline said it was back to delivering "millions of gallons per hour" following last week's cyberattack.

Ships and trucks were deployed to fill up storage tanks after the six-day Colonial Pipeline shutdown, the most disruptive cyberattack on record, triggered widespread panic buying that left filling stations across the U.S. Southeast dry.

"We have returned the system to normal operations, delivering millions of gallons per hour to the markets we serve," said the company, which had begun gradual restart of the pipeline on Wednesday.

More than 13,400 gas stations surveyed in the east and south by fuel tracking app GasBuddy were experiencing outages on Saturday, down from 16,200 early the previous day.

On Saturday evening, about 75% of gas stations in Washington, D.C. were still without fuel, an improvement from Friday's figure of 88%, the app showed. Shortages also eased in North Carolina and Virginia, but were about the same in Georgia.

U.S. gasoline demand dropped 12.6% from the previous week, probably due to an easing of "crazed" panic buying just after the pipeline shut, said Patrick De Haan, head of petroleum analysis at GasBuddy.

The nationwide average for a gallon of regular unleaded was $3.04 on Saturday, from $2.96 a week ago, according to AAA.

The pipeline outage accelerated increases in gasoline prices that were "already rising due to higher crude prices and demand ahead of Memorial Day," said AAA spokeswoman Ellen Edmonds.

She was referring to the May 31 holiday that traditionally kicks off the U.S. summer driving season.

Places served by the pipeline saw the biggest price jumps this week - with Georgia and the Carolinas up 20 cents per gallon or more - but they should also see prices decline again as supplies improve, Edmonds said.

Florence, South Carolina had the nation's biggest price increase at 30 cents, while prices rose 9 cents in D.C.

Ships deployed under emergency waivers were also moving fuel from U.S. Gulf Coast refiners to the northeast, while 18-wheel tanker trunks were ferrying gasoline from Alabama to Virginia, helping to stem the shortages.

U.S. crude prices could edge higher as refiners process more oil to catch up from the gasoline storage that was drawn down while the pipeline was shuttered, said Robert Yawger, analyst at Mizuho Securities.

The approach of Memorial Day helps make "the sense of urgency supersized" for refiners, Yawger added.

In Washington, D.C., Dennis Li was stuck on Friday at a Sunoco gas station that was out of fuel. He had tried to find gas at four stations during the day, with no luck.

"I'm running on empty to the point where I don't want to drive anymore," said Li, who is from Annapolis, Maryland.

INITIAL BREACH UNKNOWN

The hacking group blamed for the attack, DarkSide, said it had hacked four other companies including a Toshiba (OTC:TOSYY) subsidiary in Germany.

Colonial Pipeline has not determined how the initial breach occurred, a spokeswoman said this week. The 5,500-mile (8,900-km) pipeline carries 100 million gallons of gasoline, diesel and jet fuel each day to East Coast markets from Texas refineries.

Colonial has not revealed how much money the hackers were seeking or whether it paid. Bloomberg News and the New York Times said it paid nearly $5 million.

Colonial said it would resume on Monday its regular nomination process, in which shippers seek space on the line.

It released a revised schedule to shippers, with estimated delivery dates. The schedule suggested that diesel loaded in Atlanta on Friday would arrive at the northernmost point in Linden, New Jersey, 10 days later, as would gasoline.

Steve Boyd, a senior managing director at fuel delivery firm Sun Coast Resources, estimated that with gasoline moving on the pipeline at half Colonial's normal speed, it could take 12 to 20 days for new deliveries from Gulf Coast refineries to reach Linden.

Sun Coast has 75 trucks taking supplies from terminals in Alabama and Georgia to retailers as far away as Virginia.

"If customers need us for another week or three weeks, we'll be there," said Boyd.

(By Stephanie Kelly in New York, Jennifer Hiller in Houston, Rich McKay in Atlanta, Jessica Resnick-Ault in New York and Timothy Gardner in Bethesda, Maryland; additional reporting by Laura Sanicola, Joe Menn and Liz Hampton; Editing by Chris Reese and Clarence Fernandez)

U.S. fuel crisis eases as pipeline returns to normal after hack
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
Vlad Lozovskiy
Vlad Lozovskiy May 16, 2021 12:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Democrats, inflation and gas shortages are like diseases and side affects.
eduff duff
eduff duff May 16, 2021 5:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
SO oil will up and higher again. Going to 70 soon
Gene Kret
Gene Kret May 16, 2021 2:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I love TSLA l love Biden l love China. The Good the bad and the ugly.
perplexed76 .
perplexed76 . May 15, 2021 11:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hackers were paid through cryptowallet to keep anonymity. Crypto*** will be banned soon.
Atlantic Coast Money
Atlantic Coast Money May 15, 2021 11:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lets hope so. It only feeds the dark underworld of trafficking and mafia activities. No benefits whatsoever.
Mark Stallone
Mark Stallone May 15, 2021 10:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden "Tells Russia to act". Hey Biden.. news flash.. Russia WERE the hackers. So when you tell them to "act", you're telling then to Hack (again). This administration must have the lowest combined iq in American history.
Tyrone Jackson
Tyrone Jackson May 15, 2021 7:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden’s America is toast. Not 4 months in and gas shortages . And to go buy gas and store it for the next time is panic buying? Seems the reporters don’t remember the gas rationing of the 70’s hehe. I panicked bought gold at 1100 1200 and now I can relax as all the fake money creates hyperinflation. It’s called planning ahead. Not panic buying. Tools
Benjamin USA
Benjamin USA May 15, 2021 3:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Doomsayers gonna keep doomsaying.
Inayat Ullah
Inayat Ullah May 15, 2021 3:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Chris Arntz
Chris Arntz May 15, 2021 9:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It all BS. ALL BS. HEY HAVE MANUAL VALVUES THAT THEY COULD ON OPEN ANYTIME. ITS ALL BS. YOU FOOLS THAT VOTED FOR DICTATOR BIDEN. STUPID STUPID FOOLS
Benjamin USA
Benjamin USA May 15, 2021 9:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good lord you are gullible. Turn off whatever Outrage (TM) media you are watching and go for a walk outside.
Lance Brofman
Lance Brofman May 15, 2021 9:44AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They need the computers to see who has to pay for the fuel
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email