Crude and products give up earlier gains on Colonial uncertainty, India concerns

London (Quantum Commodity Intelligence) – Crude oil futures retreated from earlier highs, as concerns over the disruption caused by the cyberattack to a major US pipeline were overshadowed by spiraling COVID-19 cases in Asia.

Prices initially rallied sharply, particularly refined products, as Colonial's east coast pipeline remained down following the weekend cybersecurity attack.

Colonial's pipeline transports 2.5 million barrels each day, taking refined gasoline, diesel fuel and jet fuel from the Gulf Coast up to New York Harbor and New York's major airports.

NYMEX June RBOB rallied to a high of $2.217/gal compared to Friday's settlement of $2.1269, before easing back to $2.1321/gal at 1730 GMT.

Likewise, NYMEX June ULSD hit a high of $2.0776/gal vs Friday's close of $2.0106/gal, before dropping to $2.0194/gal.

The pipeline shutdown was initially seen as bullish, but with US Gulf Coast refining capacity potentially idled, the impact was more uncertain.

The 607,000 barrel-per-day Motiva refinery in Texas was said to have closed several units Monday as a result of the pipeline closure.

Brent futures for front-month July were trading at $68.41/barrel (1730 GMT), compared to Friday's settle of $68.28/b, an increase of 0.21% on the day.

At the same time June WTI was trading $65.06/b, up 0.16% from Friday's settle of $64.90/b.

Meanwhile, India's new COVID-19 cases are running at around 400,000, casting doubts on any oil-demand rebound later in the second quarter.