How Will The Gas Shortage Impact Your Memorial Day
US fuel prices are on the way to their highest level in seven years after hackers shut down the largest oil pipeline in the US.
This is happening at a time that people frustrated by the lockdown were hoping for their first possible holiday travel in over a year.
Before the pipeline hack, average gas prices in the US were about $2.96 per gallon. Prices were not expected to see another significant spike until after Memorial Day, but the oil pipeline hack already bumped prices up as much as 4.2% on Monday.
The 5,500-mile pipeline was shut down on Saturday after its operator, Colonial Pipeline, became the victim of a cyberattack. The incident was said to involve ransomware.
The cyberattack could spell major trouble for US gas prices, according to analysts.
"A prolonged shutdown (5 days or longer) is likely to send gasoline prices higher, which already trade close to a 7-year high," UBS Global Wealth Management wrote in a note.