Natural gas prices will continue to rise after the pipeline network attack-Morning call

2021-12-15 00:07:57 By : Mr. Mike Xiao

According to data from the American Automobile Association, the national average gasoline price rose by more than 8 cents this week to just over $3 per gallon, and after the cyber attack on the Colonial Pipeline, the price appears to be expected to rise further.

This makes the national average price the most expensive since October 2014—the last time the average price was $3 or higher.

AAA lists Pennsylvania as one of the 10 states with the largest price increases. The average price per gallon of regular gasoline in the state on Wednesday was $3.10, up from $3.01 a week ago.

Theresa Podguski, director of legislative affairs at AAA East Central, said the average price in Lehigh Valley is $3.08. It is up 10 cents a week, 17 cents higher than a month, and 1.10 US dollars higher than a year ago.

The colony pipeline-the largest pipeline between Texas and New York-closed after Friday's cyber attack. It prevented the flow of refined gasoline and jet fuel through the 5,500 miles of pipelines, which accounted for about 45% of East Coast fuel supply.

"This shutdown will have an impact on gasoline supply and prices, but the impact will vary from region to region," AAA spokesperson Jeanette McGee said at a press conference. "As early as this week, regions including Mississippi, Tennessee and the east coast from Georgia to Delaware are most likely to experience limited fuel supplies and price increases. Prices in these states may increase this week. 3 to 7 cents."

Colonial Pipeline said that some of its branch lines have been reopened, but there is no word on when its main line will be put into operation. Officials say the longer it stays offline, the greater the impact on the East Coast.

Gas Buddy analyst Patrick De Haan said on Twitter on Tuesday that gas stations in seven states have dried up, but he told The Morning Call that Pennsylvania should not see the same type of interruption. if so.

Even if the Colonial Pipeline can resume operations this weekend, AAA said it will not completely relieve the pressure. It takes about 15 to 18 days for fuel to flow from Texas to New York, which will bring us directly to the Memorial Day holiday.

AAA’s Memorial Day holiday travel forecast predicts that this year’s travellers will increase by 60% compared to last year. AAA stated that from May 27 to May 31, more than 37 million people are expected to travel 50 miles or more away from home, which is a significant rebound from the 23 million people who traveled last year. This is since AAA in 2000. The lowest record since the record.

Podguski said car travel in the Mid-Atlantic region is expected to increase by 52.5%, with approximately 4.1 million travelers from New York, New Jersey, and Pennsylvania expected to travel more than 50 miles from home.

The expected strong growth in demand after last year’s holiday is also considered a strong indicator of summer travel and a reason why gasoline prices may push up.

"Many problems are related to prices, [gasoline] demand continues to recover, so this may be the culprit," De Haan said.

Podguski also linked the increase in natural gas prices to the increase in crude oil prices and the decline in inventories.

"The fees we pay at gas stations have many factors, and the single biggest factor is the price of crude oil," Podguski said. "As prices increase, we will continue to see oil prices climb."

AAA Travel stated that it has noticed a significant increase in online traffic and bookings on AAA.com recently, especially for hotels and car rentals, which are about to enter the peak summer travel season.

According to the NBC Financial Channel, due to the closure of colonial pipelines, some American airlines and airports are scrambling to obtain fuel, while other airlines and airports are including flying planes that provide additional supplies and increasing refueling on long-haul flights. stand.

Lehigh-Northampton Airport Authority spokesperson Colin Riccobon said that operations at Lehigh Valley International Airport were not affected.

CNBC stated that Delta Air Lines and American Airlines, both flying through Allentown, are working to mitigate any possible impact of the colonization incident.

Allegiant Air, which was named a new aircraft base at LVIA last year, said its operations have not been affected.

You can contact the morning phone reporter Stephanie Sigafoos at 610-820-6612 or ssigafoos@mcall.com.