Closing of Colonial Pipeline Boosts European Exports of Refined Petroleum Products

According to a report from Petroleum News in London on May 10, 2021, a trade source said on May 10 that the closure of Colonial Pipeline, a major US oil and gas pipeline operator, boosted some Europeans.

The United States is the main importer of gasoline and vacuum light oil in Europe, and some trading sources predict that this arbitrage activity will increase if the closure of the Colonial pipeline continues until the end of this week.

The Colonial Pipeline operator confirmed on May 9 that it had reopened some smaller pipelines between the terminal and the delivery point, but after the cyber attack, its main pipeline network was still in a state of paralysis and there was no timetable for recovery.

Due to the existence of ransomware, the Colonial Pipeline halted the operation of all oil pipelines, restricted the main trunk lines that transport gasoline and refined oil to most parts of the southern and east coast of the United States, and could not transport more than 100 million gallons of fuel and heating per day.

A report said: "European gasoline will be a winner of this cyber attack.

However, some European traders remained cautious on May 10.

Li Jun compiled from Petroleum News

The original text is as follows:

Colonial Pipeline closure seen boosting European clean products

The Colonial Pipeline closure in the US has boosted sentiment in some European refined products, potentially encouraging higher flows into the world's largest oil consumer while also impacting diesel and clean tanker freight markets, trading sources said May 10.

　　The US is a key importer of European gasoline and vacuum gasoil, and some trading sources expect this arbitrage to see increased activity if the pipeline closure continues to last throughout this week.

　　Colonial's operator confirmed on May 9 it had reopened some smaller lines between terminals and delivery points, but its main pipeline network remains down with no timeline for restoration after a cyber attack.

　　Colonial had halted all pipeline operations because of ransomware, restricting the primary artery for gasoline and refined products for much of the South and East Coast from delivering more than 100 million gal/d of fuel and heating oil.

　　Analytics said it expects a ripple on gasoline and diesel despite this being a potentially short-term event.

　　"European gasoline is a winner.

　　However, some European traders remained cautious on May 10.

　　"To be honest I do not have major hopes in market recovery," said a European based fuel oil trader.