Categories: Energy

Traders book tankers in Europe to ship gasoline across Atlantic after Colonial shutdown

Holding tanks are seen at Colonial Pipeline’s Charlotte Tank Farm in Charlotte, North Carolina, U.S. in an undated photograph. Colonial Pipeline/Handout via REUTERS.

Traders provisionally booked at least six tankers to ship gasoline from Europe to U.S. destinations following a cyber attack that shut the United States’ top fuel pipeline network, Refinitiv Eikon data showed on Monday.

The attack forced the Colonial Pipeline to shut down its entire system on Friday, stoking expectations of gasoline shortages along the U.S. East Coast.

Some smaller lines were restarted Sunday, but Colonial has given no timeline for the restart of its main pipelines. read more

Two European gasoline traders said the market was taking a cautious approach to see how long the shutdown would last.

“I haven’t seen any big pick up but it would be normal for people to preemptively take vessels on subs,” one of the traders said. Subs is a term used in the oil market to describe a provisional booking for a tanker.

The second trader said that rallying freight rates amid a flurry of bookings into New York Harbour may have weighed on arbitrage economics from Europe.

European Ebob barge refining margins reached $10.38 a barrel on Monday, up from $9.35 on Friday, according to Reuters calculations.

Our Standards: The Thomson Reuters Trust Principles.

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