The colonial pipeline is said to transport 45% of East Coast fuel supply. The malicious software used in a cyber attack was ransomware, a type of malware that is designed to lock down systems by data encrypting and demanding payment to regain access, two cyber security industry sources said.
The malware has grown in popularity over the last five years and is mostly deployed by the cyber criminal groups. To contain the threat the company has temporarily halted operations and affected some of its IT systems. The longer term price effects will depend upon the amount of time that the lines are shut.
According to a Market participant; if barrels are not able to make it onto lines, Gulf coast prices could weaken further, while the prices in New York Harbor could rise.