News ID: 90096
Publish Date : 10 May 2021 - 21:31
LONDON (Dispatches) - The U.S. government issued emergency legislation on Sunday after the largest fuel pipeline in the U.S. was hit by a ransomware cyber-attack.
The Colonial Pipeline carries 2.5 million barrels a day - 45% of the East Coast’s supply of diesel, petrol and jet fuel.
The operator took itself offline on Friday after the cyber-attack and work to restore service is continuing.
The U.S. government has relaxed rules on fuel being transported by road.
It means drivers in 18 states can work extra or more flexible hours when transporting refined petroleum products.
U.S. fuel prices at the pump were largely unaffected on Monday, but there are fears that could change if the shutdown is prolonged.
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Independent oil market analyst Gaurav Sharma said a lot of fuel was now stranded at refineries in Texas.
"Unless they sort it out by Tuesday, they’re in big trouble,” said Mr Sharma. "The first areas to be hit would be Atlanta and Tennessee, then the domino effect goes up to New York.”
He said oil futures traders were now "scrambling” to meet demand, at a time when U.S. inventories are declining, and demand - especially for fuel for cars - is on the rise as consumers return to the roads and the economy recovers.

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