- Oil rose on Monday after a cyberattack forced the shutdown of major fuel pipelines in the United States.
- It also raised concerns about supply disruption, outweighing rising coronavirus cases in Asia.
- Colonial Pipeline said on Sunday its main fuel lines remained offline after the attack that shut the system on Friday.
- But some smaller lines between terminals and delivery points were now operational.
A recent news article published in the Reuters by Alex Lawler reveals that oil gains after cyberattack forces shutdown of U.S. fuel pipelines.
Worrying COVID-19 trend
“The bullish developments in the U.S. are hiding a worrying COVID-19 trend in Asia,” said Louise Dickson, analyst at Rystad Energy.
Brent crude was up by 69 cents, or 1%, at $68.97 a barrel by 1137 GMT. U.S. West Texas Intermediate (WTI) crude CLc1> rose by 61 cents, or 0.9%, to $65.51.
Both benchmarks rose more than 1% last week, their second consecutive weekly gain.
“That said, it is currently assumed that the disruption to the pipelines will be resolved in a matter of days, so the impact should be limited.”
The White House does its job
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.
Brent crude has risen over 30% this year due to supply cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, and easing coronavirus movement restrictions in the United States and Europe.
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Source : Reuters