Oil prices rose on May 10 after major U.S. fuel pipeline operator Colonial Pipeline had to shut fuel pipelines due to a cyberattack, raising concerns about supply disruption and pump price increases.
Colonial Pipeline said on May 9 its main fuel lines remained offline after the attack that shut the system on May 7, but some smaller lines between terminals and delivery points were now operational.
“The Colonial Pipeline hack headlines over the weekend have lifted oil prices,” said Jeffrey Halley, analyst at brokerage OANDA. “Colonial aside, oil may be vulnerable to some abrupt long-covering sell-offs as the week progresses.”
Colonial Pipeline Latest: US Government to Help Operator after Cyberattack
Brent crude was up by 31 cents, or 0.5%, at $68.59/bbl by 0820 GMT. WTI crude in the U.S. rose by 46 cents, or 0.7%, at $65.36. Both benchmarks rose more than 1% last week, their second consecutive weekly gain.
“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 defenses that can offset all the different ways that malware can infect one’s system.”
The White House was working closely with Colonial to help it to recover. Commerce Secretary Gina Raimondo said the pipeline fix was a top priority for the Biden administration and Washington was working to avoid more severe supply disruptions.
Oil has risen 33% this year due to supply cuts by OPEC and allies, known as OPEC+, and easing coronavirus movement restrictions in the U.S. and Europe.
While some analysts have said oil demand may never reach pre-pandemic levels, Goldman Sachs said it expected this by the end of the year and predicted Brent would hit $80 and WTI $77 within six months.
U.S. Energy Corp. Declares Quarterly Cash Dividend
2023-05-09 - The dividend of $0.0225 per share will be payable on May 30.
Targa Appoints Joel Thomas to SVP Finance, Treasurer
2023-04-17 - Midstream company Targa Resources appointed Thomas to senior vice president of finance and treasurer.
Amplify Energy Names James Frew as CFO
2023-04-17 - James Frew joins Amplify Energy was named senior vice president and CFO by Amplify Energy on April 17.
Ranger Oil Announces Quarterly Cash Dividend
2023-05-05 - Dividend will be payable on May 30 to shareholders on record as of May 22.
W&T Offshore Announces CFO Change
2023-04-06 - W&T’s CFO Janet Yang is leaving the company on May 11 and Vice President and Chief Accounting Officer Trey Hartman will be serving as interim CFO until a formal replacement is made.