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U.S. pipeline operator shuts entire network after a cyberattack

Top US fuel pipeline operator Colonial Pipeline shut down the whole network following a cyber attack, the company said in a Friday statement.

The Colonial network provides gasoline to the populated Eastern and Southern United States from U.S. Gulf Coast refineries. The company transports 2,5 million barrels a day through 5,500 miles (8,850 km) of pipelines of coal, gasoline, jet fuel, and more refined products.

Colonial Pipeline reports that it carries 45% of the fuel supply from the East Coast.

Colonial Pipeline shuts pipeline operations after cyberattack

On Friday, the company heard about the attack and took offline systems to contain the assault. It said that the action stopped operations temporarily and impacted some of its IT systems.

The business has hired a third-party cybersecurity agency, and Colonial has approached law enforcement and other federal agencies.

Colonial did not provide additional information or state how long his pipelines would be shut.

Earlier on Friday, Reuters announced that Colonial had shut down its main fuel and distillate lines.

During the trading session on Friday, the Gulf Coast petrol and diesel cash rates decreased.

Key U.S. Energy Pipeline Closes After Cyberattack - WSJ

The New York Mercantile Exchange’s petrol and diesel futures rose more than crude prices throughout the day. Gasoline futures added 0.6 percent to $2,1269 per gallon while gasoline futures increased 1.1 percent to $2,0106 per gallon.

Longer-term price effects depend on how long the lines are locked. One market participant said that if barrels can not get into the path, Gulf Coast prices could weaken further while the prices of New York Harbor could increase.

During Hurricane Harvey, which hit the Gulf Coast in 2017, Colonial shut down its gasoline and distillation lines.

At the time, the price of gasoline from the Spot Gulf Coast had risen to five years, while the price of diesel had risen to about four years.

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