Published on May 10, 2021
Over the weekend, a hacker group DarkSide cyber attacked the key Colonial Pipeline network. The Colonial Pipeline is the nation’s largest pipeline network which carries fuel from the Gulf Coast to the Northeast. The ransomware attack ground all operations to an immediate halt, and Colonial is slowly bringing operations back online over the weekend and into this week. Gasoline futures jumped to the highest forward levels that we have not seen since mid-2018. As of this morning, Crude prices are lower, and through the morning we’ve seen gas futures trade lower.
In a mention of luck, storage levels for fuels were quite well padded as a majority of the fuel transported by the Colonial lines goes to storage in order to be released at later dates. If the lines stay down for more than a few days, we may see some immediate pricing impacts at the pumps across the nation and specifically the Northeast.
This attack has not impacted Electricity and Natural Gas prices across the Northeast, and we have not seen any impacts on our grid operations. I will be providing updates as we receive more information throughout the upcoming days.