Oil prices slightly go up at auction on Wednesday

On Wednesday, oil prices were going up weakly, as traders sit in judgement on news regarding the Colonial Pipeline Co. pipeline system, which is the main source of gasoline, diesel and jet fuel supplies to the US East Coast, Interfax reports.

Colonial, which was forced to suspend operations last Friday, May 7, due to a hacker attack, expects to restore the bulk of operations by the end of this week.

The eastern states of the United States have been experiencing fuel shortages, while refiners in the Gulf of Mexico are forced to cut production because they cannot send enough products to customers, Bloomberg writes. Some of the refiners were forced to charter tankers to store excess petroleum products.

The cost of July futures for Brent oil at the London stock exchange ICE Futures by 8:25 a.m. Kyiv time on Wednesday amounted to $68.61 per barrel, which is $0.06 (0.09%) higher than the price at the close of the previous session. As a result of trading on Tuesday, these contracts increased by $0.23 (0.3%) up to $68.55 per barrel.

The price of June futures for WTI in electronic trading at the New York Mercantile Exchange (NYMEX) by this time reached $65.37 per barrel, which is $0.09 (0.14%) higher than the final value of the previous session. The day before, the value of these contracts increased by $0.36 (0.6%) up to $65.28 per barrel.

"Refiners in Louisiana and East Texas, which ship primarily through pipelines, may have to cut production by 20% for a few days to maintain acceptable inventory levels," said Energy Aspects expert Matthew Perry.

Tags: oil, USA, petroleum products, oil deliveries, gasoline, diesel, infrastructure, Brent, WTI, oil pipeline, oil reserves

Read also

An Eye for an Eye: Ukrainian Power Engineers Demand Compensation from Russians for Destroyed Property
The Security Service of Ukraine issues suspicion notice to Russian billionaire for exporting raw materials for Rosatom from Ukraine.
ZELENSKY: Russian authorities are planning to blow up the Zaporizhzhya nuclear power plant to destabilize Ukraine