Russian To Judgment, Con't

So the cyberattack that brought down the Colonial Pipeline on Friday may be part of the Russian mob's revenge on US sanctions, in what should not surprise anyone.

A Russian criminal group may be responsible for a ransomware attack that shut down a major U.S. fuel pipeline, two sources familiar with the matter said Sunday.

The group, known as DarkSide, is relatively new, but it has a sophisticated approach to the business of extortion, the sources said.

Commerce Secretary Gina Raimondo said Sunday that the White House was working to help Colonial Pipeline, the Georgia-based company that operates the pipeline, to restart its 5,500-mile network.

The system, which runs from Texas to New Jersey, transports 45 percent of the East Coast's fuel supply. In a statement Sunday, the company said that some smaller lateral lines were operational but that the main lines remained down.

"We are in the process of restoring service to other laterals and will bring our full system back online only when we believe it is safe to do so, and in full compliance with the approval of all federal regulations," the company said.

Raimondo said on CBS' "Face the Nation" that the effort to restart the network was "an all-hands-on-deck effort right now."

"We are working closely with the company, state and local officials to make sure that they get back up to normal operations as quickly as possible and there aren't disruptions in supply," she said, adding: "Unfortunately, these sorts of attacks are becoming more frequent. They're here to stay."

A White House official said Sunday that the Energy Department is leading the government's response. Agencies are planning for a number of scenarios in which the region's fuel supply takes a hit, the official said.

 

The Biden White House is at least taking this seriously as an attack on the country's infrastructure and economy, and "criminal groups acting with state blessing" is the hallmark of Putin's oligarch mafia. Trump of course would have refused to act for weeks until he could have found a way to blame China, and Americans would have suffered in the meantime.

The bigger short-term problem is gasoline futures are rising sharply, and gas prices on the East Coast are soon to follow.

Futures for fuel prices rose Monday, as much of one of the largest pipelines in the U.S. remains closed following a cybersecurity attack.

Gasoline futures rose 0.6% to $2.14 per gallon, pulling back from their highest levels of the overnight session. At one point, gasoline futures jumped as high as $2.216, levels not seen since May 2018.

Heating oil futures rose 0.6% to $2.02, also off the highest levels of the session.

West Texas Intermediate crude futures, the U.S. oil benchmark, turned lower, giving up earlier gains. It was last down 0.2% to $64.78 per barrel. International benchmark Brent crude traded at $68.69 per barrel, for a gain of 40 cents. Natural gas futures declined 0.5% to $2.91 per million British thermal units.

Colonial Pipeline said Sunday evening that some of its smaller lateral lines between terminals and delivery points are once again online but that its main lines are still shut down.

In an attempt to maintain fuel supplies along the Eastern Seaboard, the U.S. declared a state of emergency in 17 states and the District of Columbia on Sunday evening.

It is not yet clear whether the shutdown will raise prices consumers pay at the pump, but analysts say a prolonged shutdown beyond five days could translate to higher prices.

The markets are expecting this to be over with shortly. If it's not, it's going to get bad, and fast.