Oil Futures Settle Slightly Higher

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Crude oil futures closed marginally up on Monday, recovering after a fall from higher levels, due largely to news about the shutdown of critical fuel supply pipelines in the U.S. following a major cyberattack.

Worries about energy demand outlook due to continued spikes in coronavirus cases in Asia pushed down oil prices in mid-morning trades, and prompted traders to stay cautious till the end of the session.

Oil found some support on hopes energy demand in the U.S. and Europe will increase thanks to re-opening of the economies.

West Texas Intermediate Crude oil futures for June ended up $0.02 or 0.02% at $64.92 a barrel, after falling to a low of $63.95 around late morning.

Brent crude futures edged up by 4 cents to $68.32 a barrel.

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.

Colonial Pipeline 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.

The material has been provided by InstaForex Company – www.instaforex.com

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