Oil prices are declining despite the continued suspension of US fuel pipelines

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Oil prices are declining despite the continued suspension of US fuel pipelines


Tuesday – 29 Ramadan 1442 AH – May 11, 2021 AD Issue No. [
15505]


London: “Asharq Al-Awsat”

Oil prices declined during trading yesterday (Monday), despite the closure of important fuel supply pipelines in the United States after a major cyber attack that highlighted the fragility of its oil infrastructure.
By 1528 GMT, Brent crude fell 0.6 percent to $ 67.87 a barrel, after rising 1.5 percent last week. US West Texas Intermediate crude futures fell 0.7 per cent to $ 64.44 a barrel, after rising more than 2 per cent last week.
In a sign of the gravity of the situation, the White House has been working closely with Colonial Pipeline to help it recover from a ransomware attack that forced the largest US fuel pipeline operator to shut down a network supplying densely populated states in the country’s east.
“The main idea is that the bad guys are very adept at finding new ways to penetrate the infrastructure,” said Andrew Lipo, president of Lipo Oil Associates, according to Reuters. “The infrastructure has not developed defenses that can counter all the different ways that malware can infect.” Through it the damage to the system ».
Colonial’s network is the source of nearly half of the fuel supply for the east coast of the United States, and it transports 2.5 million barrels per day of gasoline and other fuels. The company was forced to shut down all pipelines after Friday’s cyber attack, which included ransomware.
Goldman Sachs said that he expected oil demand to reach pre-pandemic levels by the end of the year. He expected Brent crude to reach $ 80 a barrel and West Texas Intermediate to reach $ 77 per barrel within six months.
“We see a deficit in the global oil market, which is currently about one million barrels per day, and it will increase significantly on this,” Goldman analysts said in a note. They said, “We still expect demand for oil to reach 100 million barrels per day by the end of this year.”
Meanwhile, Kuwait Oil Company said that a “limited fire” broke out yesterday, in its large Burgan field, causing two workers to be injured, but without affecting production operations.
She said the fire was brought under control quickly. According to Wood Mackenzie, the large Burgan field is the largest of Kuwait’s fields and one of the largest producing fields in the world.


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