2021.05.1010:40:00UTC+00Oil Prices Rise After Cyberattack On US Fuel Pipeline

Oil prices rose on Monday after a major cyberattack forced the shutdown of critical fuel supply pipelines in the United States and highlighted the fragility of its oil infrastructure.

The upside, however, remained capped amid a continued surge in coronavirus cases in Asia and the possibility of another shutdown in some countries.

Brent crude for July settlement rose 0.6 percent to $68.69 a barrel, while U.S. West Texas Intermediate (WTI) crude futures for June delivery were up half a percent at $65.23. Both benchmarks rose over 1 percent last week, marking their second consecutive weekly gain.

The U.S. government declared a regional emergency Sunday after major fuel pipeline Colonial Pipeline said it was the victim of a cybersecurity attack involving ransomware -- attacks that encrypt computer systems and seek to extract payments from operators.

The largest fuel pipeline system in the United States ships gasoline and jet fuel from the Gulf Coast of Texas to the populous East Coast through 5,500 miles (8,850 kilometers) of pipeline, serving 50 million consumers.

The company said that it had opened some smaller delivery lines, but the main system was not yet back up and running, raising concerns about supply disruption.