Oil rises 1% after cyberattack forces closure of US fuel 'jugular' pipeline

Signalling the seriousness of the situation, the White House was working closely with Colonial Pipeline to help it recover from the ransomware attack,
...
Brent crude was up by 76 cents, or 1.1%, at $$69.04 a barrel, having risen by l.5% last week. (REUTERS)
Brent crude was up by 76 cents, or 1.1%, at $$69.04 a barrel, having risen by l.5% last week.

Crude prices climbed more than 1% on Monday after a major cyberattack that forced the shutdown of critical fuel supply pipelines in the United States, highlighting the fragility of oil infrastructure.

Brent crude was up by 76 cents, or 1.1%, at $$69.04 a barrel by 0039 GMT, having risen by l.5% last week. US West Texas Intermediate futures rose by 70 cents, or 1.1%, at $65.60 a barrel, after gaining more than 2% last week.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
View Details
Porsche 911 Gt3 (HT Auto photo)
Engine Icon3996.0 cc FuelType IconPetrol
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
View Details
Lexus Nx (HT Auto photo)
Engine Icon2494.0 cc FuelType IconMultiple
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
Engine Icon6750 cc FuelType IconPetrol
₹ 6.95 - 7.95 Cr
View Details
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.30 Cr
Compare

Signalling the seriousness of the situation, the White House was working closely with Colonial Pipeline to help it recover from the ransomware attack, which forced the biggest US fuel pipeline operator to shut a network supplying populous eastern states.

Colonial's network is the source of nearly half of the US East Coast's fuel supply, transporting 2.5 million barrels per day of gasoline and other fuels, and the company had to shut all its pipelines after the cyber attack on Friday, which involved ransomware.

It was not clear who carried out the attack, but sources told Reuters the hackers were likely a professional cybercriminal group.

Colonial said on Sunday its main fuel lines remain offline but some smaller lines between terminals and delivery points are now operational. It didn't say when the network might return to full operational capacity.

"The major takeaway is the bad guys are very adept at finding new ways to penetrate infrastructure," Andrew Lipow, president of Lipow Oil Associates told Reuters. "Infrastructure has not developed defences that can offset all the different ways that malware can infect one's system."

A prolonged shutdown of the line, described as the "jugular of infrastructure" in the United States by one analyst, would cause prices to spike at gasoline pumps ahead of peak summer driving season, a potential blow to US consumers and the economy.

US gasoline prices jumped nearly 2%, while heating oil was up by more than 1%.

The attack has prompted calls from American lawmakers to strengthen protections for critical US energy infrastructure from hacking attacks.

The Department of Energy said it was monitoring potential impacts to the nation's energy supply, while the US Cybersecurity and Infrastructure Security Agency and the Transportation Security Administration told Reuters they were working on the situation.

First Published Date: 10 May 2021, 15:13 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.