MOSCOW (MRC) -- Oil futures prices fell in midmorning London trading May 13 on news that the key Colonial Pipeline in the US has restarted operations following a cyberattack on May 7, reported S&P Global.
At 11:04 am London time (1004 GMT), the ICE July Brent contract was down USD1.74/b (2.5%) from the May 12 settle at USD69.32/b while the NYMEX June light sweet crude contract was down USD1.79/b cents/b (2.7%) at USD66.10/b.
"Following this restart, it will take several days for the product delivery supply chain to return to normal," Colonial said in a statement. "Some markets served by Colonial Pipeline may experience, or continue to experience, intermittent service interruptions during the start-up period. Colonial will move as much gasoline, diesel, and jet fuel as is safely possible and will continue to do so until markets return to normal."
As MRC informed earlier, Colonial had halted all pipeline operations May 7 because of a ransomware attack. The halt restricted flows of gasoline and other refined products for much of the US South and East Coast, preventing the pipeline from delivering more than 100 million gallons/d of fuel and heating oil. The shutdown and subsequent market reaction raised gasoline prices above USD3/gallon - the highest level since 2014.
While Colonial's announcement was an "encouraging development," the pipeline will take several days to completely return, and "there is significant panic buying in the United States (even in locations not served by the pipeline) which exacerbates the impact of the shortfall," according to S&P Global Platts Analytics.
We remind that Marathon Petroleum, the largest US refiner, can meet its supply commitments for now but is working to find alternative ways to ship motor fuels to the eastern United States if the Colonial Pipeline shutdown is extended.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 576,270 tonnes in the first three month of 2021, up by 4% year on year. Low density polyethylene (LDPE) and high density polyethylene (HDPE) shipments increased. At the same time, PP shipments to the Russian market totalled 410,890 tonnes in January-March 2021, up by 56% year on year. Supply of homopolymer PP and PP block copolymers increased.
MRC