Gas stations in U.S. Southeast running out of fuel as Colonial works to restore pipeline service

Market Watch:

Perfect time to go electric?

Some gas stations from Florida to Virginia are running out of gasoline as Colonial Pipeline works to restore service on a key East Coast fuel artery following a ransomware attack, according to fuel-price tracker GasBuddy.

The firm’s data showed that as of 6 a.m. Eastern on Tuesday, 4.8% of gas stations in North Carolina were without gasoline, analyst Patrick De Haan said via Twitter. Stations in six other states — Georgia, Alabama, Tennessee, South Carolina, Virginia and Florida — also reported outages.

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. The pipeline delivers around 45% of fuel consumed by the U.S. East Coast.

Oil and gasoline futures were both lower on Tuesday, with investors taking comfort from the idea that the outage was a glitch that would soon be remedied. West Texas Intermediate crude for June delivery CL00, -1.76% CLM21, -1.76% fell 89 cents, or 1.4%, to $64.03 a barrel on the New York Mercantile Exchange, while June gasoline RBM21, -1.58% was off 1.41 cents, or 0.7%, at $2.1193 a gallon.

Drivers in the Southeast were seen as most vulnerable to higher pump prices or outages following the pipeline shutdown, analysts said, while states in the Northeast have access to other pipelines and ports.

More at Market Watch

Join now!