Oil Prices Fall on Expectations Colonial Pipeline Outage Will Be Temporary
- Total Posts: 522
Oil futures traded lower Tuesday, with investors looking past the closure of the Colonial Pipeline that provides 45% of the fuel consumed on the U.S. East Coast as the company works to restore service by the end of the week.
“Oil prices are falling as the Colonial Pipeline disruption has all the hallmarks of a short-term glitch,” said Sophie Griffiths, analyst at Oanda, in a note. “Investors have accepted that the pipeline failure is not likely to be an ongoing issue, with a phased restart expected imminently and full operation restored by the end of the week.”
West Texas Intermediate crude for June delivery fell 77 cents, or 1.2%, to $64.15 a barrel on the New York Mercantile Exchange. July Brent crude the global benchmark, dropped 73 cents, or 1.1%, to $67.59 a barrel on ICE Futures Europe.
Gasoline futures were also under pressure, with the June contract down 0.5% at $2.1226 a gallon.
Colonial on Monday said its goal was to “substantially” restore operations by the end of the week. Colonial closed its 5,500 mile pipeline over the weekend following a ransomware attack. Meanwhile, the shutdown has stoked a spike in demand for gasoline, with some stations from Florida to Virginia running low or out of fuel, according to Patrick De Haan, analyst at Gas Buddy, on Twitter:
May 11, 2021 at 1:12 PM #422696David the GnomeParticipant
- Total Posts: 3,033
There was an article about Americans being worried about 3 dollar a gallon gas. I had to chuckle. It was already over 3 here – and worth noting that I live in one of the most economically depressed Counties in America. Not the most – but certainly among them. So, we really can’t afford 3 dollars a gallon, but people pay it anyway, especially commuters. We can’t afford a tesla – and that shit doesn’t work in our winters anyway.
More and more, I find young people (my age – around 35-40 and younger) have no car. They live in such a way that they can walk to work or school, because there is no public transportation worth noting in northern Maine.
May 11, 2021 at 3:09 PM #422730
May 11, 2021 at 3:29 PM #422735Ohio BarbarianModerator
- Total Posts: 20,590
I have Facebook friends in California showing pictures of $4.35 a gallon gas. Go figure.
It is better to vote for what you want and not get it than to vote for what you don't want and get it.--Eugene Debs
You can jail a revolutionary, but you can't jail the revolution.--Fred Hampton
May 11, 2021 at 3:54 PM #422743mrdmkParticipant
- Total Posts: 3,194
On the cheap side, gasoline is $3.65 a gallon (Costco and Arco)
On the expensive side, gasoline is $4.60 a gallon (Chevron and Mobile)
I’m sure California is really effected by an east coast problem considering we pump enough oil to export around the world
If you cannot dazzle them with brilliance, baffle them with bullshit WC FieldsWarning DO NOT CLICK HERE!
- You must be logged in to reply to this topic.