One of the USA’s largest pipeline bringing refined gasoline and jet fuel from Texas to New York was shut down by cyberattacks. This critical energy infrastructure has been hit by a ransomware.
The pipeline is run by Georgia-based Colonial Pipeline, which carries fuel and gasoline from Texas to New York. According to the company, It delivers about 45% of the fuel used on the East Coast.
Colonial’s pipeline carries 2.5 million barrels every day, taking refined gasoline, jet fuel and diesel oil from the Gulf Coast up to NY Harbor and New York’s major airports.
Experts indicated that gasoline prices are unlikely to be changed if the pipeline is back to normal within the next few days. This incident is to believe the worst cyber attack to date on U.S. infrastructure and should be taken as a wake-up call to companies about the vulnerabilities they face.
What is Ransomware?
Ransomware jumbles data that can only be decoded with a software key after the victim pays off the criminal perpetrators. Ransomware attacks are hard to prevent because they’re normally launched by criminal groups that enjoy safe harbour abroad.
Gasoline Shortages
Colonial said it’s likely to revive service on the bulk of its pipeline by Friday.
The emergency declaration allows for fuel to be carried by road to the affected states such as Texas, Alabama, Arkansas, Louisiana, District of Columbia, Delaware, Florida, Georgia, Kentucky, Virginia, Maryland, Mississippi, New Jersey, North Carolina, South Carolina, Pennsylvania, Tennessee and New York.
Future price of gasoline
Gasoline futures ticked higher on Monday. Futures for crude and fuel, prices that traders buy contracts for delivery within the future begin to rise. The price of regular-grade gasoline has jumped 6 cents over the past fortnight, to $3.02 per gallon, which is $1.05 above a year ago.
Crude prices climbed more than 1%. Brent crude was up by 76 cents, at $69.04 a barrel, having risen by 1.5% last week. U.S. West Texas Intermediate futures rose by 70 cents, or 1.1%, at $65.60 a barrel, after gaining quite 2% last week.
The attack on the Colonial Pipeline could exacerbate the upward pressure on prices if it’s unresolved for a period of time.
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