Oil is rising.. Fuel runs out of more than 1000 fuel stations in America
Oil is rising.. Fuel runs out of more than 1000 fuel stations in America:
This week is almost over, amid tension in the United States of America after the cyber attack on the Colonial Pipeline.
Traders are waiting for the announcement of the US inflation data, and know-how this will affect markets.
Follow all the details and more with Evest through the following lines.
New oil support from declining US stocks
Oil prices rose after the decline in US crude oil inventories boosted demand expectations as the market is watching the effects of the reduction in the supply of the Colonial pipeline in the United States.
Brent crude futures rose by 0.41% to record $68.84 a barrel, while US light crude climbed to $65.57 a barrel.
According to Bloomberg
According to Bloomberg, data from the American Petroleum Institute showed that US crude oil inventories retreated by 2.5 million barrels in the week ending on May 7.
This drop is a little smaller than expected.
Eight of analysts polled by Reuters estimated that crude oil inventories would shrink by 2.8 million barrels.
This comes days before the cyber attack shut down the largest oil pipeline in the United States,
which transports more than 2.5 million tons of fuel a day.
Much of the network is expected to be operated again by the end of the week.
Meanwhile, the market is already on edge with fuel running out of fuel stations from Florida to Virginia where Americans are rushing to refill their tanks, leading to higher prices.
Analysts said “Although prolonged disruption will support prices,
it may begin to affect crude oil prices if refineries along the Gulf of Mexico are forced to reduce work because of storage”.
The American Automobile Association
The American Automobile Association announced that the price of unleaded gasoline in the United States averaged $2.99 a gallon, the highest price since November 2014.
Black gold
Black gold prices have also been supported by the latest forecast of the Organisation of Petroleum Exporting Countries (OPEC), which is committed to expectations of a strong recovery in global demand in 2021, as growth in China and the United States will offset the adverse effects.
OPEC
OPEC announced that it expected demand to grow 5.95 million barrels a day this year,
leaving its forecast unchanged from last month.
However, the Organisation has reduced its second-quarter demand forecast by 300,000 barrels a day due to the increase in Covid-19 cases in India.
In its monthly report, OPEC said: “India is currently facing serious challenges with Covid-19 and will therefore face challenges that will affect its recovery in the second quarter.
However, the country is expected to continue to improve again during the second half of 2021″.
More than 1000 stations have been running out of fuel in the USA
Governors on the east coast of the United States of America declared a state of emergency to deal with the fuel supply problem, as the main pipeline did not pump raw materials for the sixth day after the infiltrator’s attack.
The Americans rushed to refuel their cars.
Long lines were formed at fuel stations, and for some fuel stations, demand increased by up to 40%.
Drivers reacted almost panicked to reports of the pipeline’s closure.
At some fuel stations, the number of customers increased by up to 40%.
Prices have also risen, but there were also places where fuel had already run out.
According to S&P’s Oil Price Information Service estimates,
there were more than 1000 stations that have run out of fuel, such as in Virginia and North Carolina.
The Associated Press quoted Standard and Poor’s analyst Tom Clousa as saying “a lot of this is because they sell three or four times the amount of fuel they usually sell on a given day because people are panicking.
This problem affects the east coast of the United States, particularly Florida, Georgia, Caroline, and Virginia, so their governors decided to declare a state of emergency.
Joe Biden’s administration
According to President Joe Biden’s administration, the pipeline will be operated in a few days.
Jennifer Granholm, the energy minister, urged residents not to rush to fill fuel tanks for now.
However, the crowds at the stations are the most prominent address in the United States media.
Granholm also said that drivers should report price increases,
stressing that “we will not tolerate” station owners who are exploiting the situation to raise prices.
For his part, the governor of Georgia decided to suspend the fuel tax imposed by the state.
Reportedly, Friday’s hacking attack stopped the largest fuel pipeline in the United States.
Cybercriminals attacked the Colonial Pipeline’s IT system and demanded a ransom to repeal its ban.
The company decided to suspend the transmission – a network of 9000 kilometers providing nearly half of the fuel to the east coast – from the Gulf of Mexico to the metropolitan area of New York.
Gold loses again
Gold lost 1% on today’s dealings, as it was trading at$1816.90 an ounce,
while gold futures declined by 0.3% compared to the previous day.
Today, market participants are waiting for American inflation data and their impact on the precious metal market.
Asian stock exchanges are refreshing.. Tokyo is excluded from this
The Tokyo Stock Exchange closed sharply today, after falling by 3% the previous day following the Nasdaq index in New York, as markets are anxiously waiting to announce inflation data in the United States later in the day.
The main Nikkei index retreated by 1.61% to record 28,147.51 points and the expanded Topix declined by 1.47% to reach 18,777.95 points.
Tokyo
Tokyo continued to retreat despite the recovery of the Nasdaq index the previous day,
which fell on Monday amid concerns about inflation in the United States,
which was exacerbated by rising commodity prices.
Hong Kong
In Hong Kong, the Hang Seng index rose by 0.59%,
while Composite Shanghai and Shenzhen closed at a height.