New York:
Top U.S. fuel pipeline operator Colonial Pipeline has shut its whole network soon after a cyber attack, the firm stated in a statement on Friday.
Colonial’s network supplies fuel from U.S refiners on the Gulf Coast to the populous eastern and southern United States. The firm transports 2.5 million barrels per day of gasoline, diesel, jet fuel and other refined solutions via 5,500 miles (8,850 km) of pipelines.
Colonial Pipeline says it transports 45% of East Coast fuel provide.
The firm discovered of the attack on Friday and took systems offline to include the threat, it stated in the statement. That action has temporarily halted operations and impacted some of its IT systems, it stated.
The firm has engaged a third-party cybersecurity firm to launch an investigation, and Colonial has contacted law enforcement and other federal agencies, it stated.
Colonial did not give additional specifics or say for how extended its pipelines would be shut.
Reuters reported earlier on Friday that Colonial had shut its major gasoline and distillate lines.
During the trading session on Friday, Gulf Coast money rates for gasoline and diesel edged reduce.
Both gasoline and diesel futures on the New York Mercantile Exchange rose more than crude rates through the day. Gasoline futures gained .6% to settle at $2.1269 a gallon, though diesel futures rose 1.1% to settle at $2.0106 a gallon.
Longer-term cost effects will rely on the quantity of time that the lines are shut. If barrels are not capable to make it onto the lines, Gulf Coast rates could weaken additional, though rates in New York Harbor could rise, one industry participant stated.
Colonial considerably shut down its gasoline and distillate lines through Hurricane Harvey, which hit the Gulf Coast in 2017.
During that time, spot Gulf Coast gasoline rates rose to a 5-year higher, though diesel rates rose to about a 4-year higher.
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