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According to Bloomberg A sharp surge in U.S. gasoline futures prices due to the leak began to reverse on Monday as gas station operators began accepting fuel arriving by other means, including ships.
The oil pipeline of the largest automobile fuel oil carrier in the United States was shut down after a leak occurred on October 1. The main line of gasoline that leaked has a daily transport capacity of 10,000 barrels per day. It is the main source of fuel supply from the Gulf of Mexico to the East Coast. It supplies gasoline to approximately 10 million people on the East Coast every day. The pipeline closure since March has caused the interruption of more than 10,000 barrels of gasoline transportation.
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If you want to restart The pipeline requires federal approval. It is reported that the company is building another pipeline that will bypass the section where the leak occurred. Alabama Governor Bentley (RbB) said at a press conference on Monday that the new pipeline is expected to be completed this week. It was reported that the accident caused a gasoline shortage in Alabama, Tennessee and Georgia, and states of emergency were declared. A diesel pipeline was deployed to deliver gasoline last weekend to ease market demand. Nashville, Tenn., has been receiving supplies from alternative pipelines since Saturday. Valero Energy Corp. is also supplying product to the market from its refinery in the state. Still, rumors of a gasoline shortage helped one Tennessee retailer sell gallons of gasoline within an hour. LeRoy, executive director of the Tennessee Fuel and Convenience Store Association, said in a statement that a large-scale supply can generally last for several days.
Williams of the Tennessee Petroleum Association ( ) said that although the situation was really severe before, it is now beginning to ease and new pipelines will be ready this week and supply should return to normal. But gas stations in Georgia and Alabama are experiencing supply shortages despite increased shipments and chartered truck deliveries around the clock. "We have a few gas stations that are out of gas even though we have as many fuel trucks out as possible," said Holland of the Georgia Convenience Store Association. Alabama is also facing retail shortages after pipeline leaks, but Fletcher, head of the state's Petroleum and Convenience Stores Association, told Bloomberg in an email that shortages are now under control. Governor Bentley says retail gasoline prices have surged by cents per gallon in one week.
After being shut down, local suppliers found ways to maintain fuel supplies of 10,000 barrels per day, using alternative transportation methods such as barges, tankers and trucks. Shipping data compiled by Bloomberg show that one tanker that was supposed to carry fuel from a Gulf of Mexico refinery to Florida took fuel to Savannah, Georgia, this weekend and another arrived in Charleston, South Carolina on Monday. ( ).
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