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Cyberattack on a Top U.S. Pipeline: Rising Gas Prices & Panic Buying in the Southeast Thumbnail

Cyberattack on a Top U.S. Pipeline: Rising Gas Prices & Panic Buying in the Southeast

A cyberattack by an unnamed criminal group temporarily halted Colonial Pipeline, a major U.S. pipeline carrying 45 percent of the East Coast's fuel supplies.1 While prices have only climbed three cents on average across the nation as of May 14, another practical concern for drivers was reports of closed pumps and long lines.2

While this situation is alarming and has a number of short-term consequences, it’s important to remember that the attack has mainly affected the computer systems used to transport the fuel. The actual pipelines themselves are still functional and, as of May 13, the pipeline has gone back to being fully operational.

That said, it’s also important to remember that, for many Americans, a year of pandemic life is over or nearing the end. Nicer weather is a factor, too. This could point to an energy sector that hasn’t correctly timed the inevitable increase in demand once things returned to something like normal.

Whatever lies ahead, it’s important to remember that, while these might be difficult matters for the household, they do not necessarily reflect the economy as a whole. Your economic strategy factors information like rising prices, so it’s important not to let certain events distract you from the bigger picture. As always, your financial advisor is available to discuss any concerns you may have.

  1. https://www.nytimes.com/2021/05/08/us/politics/cyberattack-colonial-pipeline.html
  2. https://gasprices.aaa.com/

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

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