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00:00So having you talk to us first of all about what traders are doing to try and get around this blocked pipeline. Well the pipeline is a massive conduit for gasoline and other refined products all the way from the U.S. Gulf of Mexico coast where most of the refineries are located to their consumption centers are in the East Coast are on that land dick coast. So far what trains have trying to do is bring supplies by sea where that's possible. And one. One option certainly ease in their New York harbor which can bring a lot of gasoline supply from Europe. They can use also barges moving out from the U.S. Gulf Coast into Florida and some other markets. But beyond that they really need the pipeline back into running and they need that soon. If we have another delay of 24 hours probably that's manageable. But anything beyond 24 hour waits is going to get very problematic to someplace on areas in particular the area around Atlanta. But so have you. If it last more than two 3 days how much shortages are we actually going to see. I mean is it possible that cars won't be able to refill their tanks. Well the good news is that demand is down particularly for jet fuel but also for gasoline because of the impact of Corbett. So we have a bit both of more cushion but we are going to be soon probably to see panic buying by some consumers. I see the news about the Paul Allen of the pipeline. As you were mentioning this is not just a regular pipeline is a massive complex. More than five thousand five hundred miles long connects about 25 refineries to about 250 different terminals around the United States and transport 2.5 million barrels of gasoline diesel and jet fuel every day. Just to put that into context that's more what Germany consumes as a whole nation. So that pipeline equals Germany. We will see sort suggests we may see some localized shortages is not going to be widespread but in particular locations that they really depend on the pipeline and they don't have any other alternative. And I'm thinking again in the area around Atlanta we may see localized shortages.

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What the Colonial Pipeline Hack Means for Fuel Supplies

Fuel traders are working to avoid gasoline and diesel supply shortages on the East Coast of the United States following a ransomware attack Friday on Colonial Pipeline Co. Bloomberg’s Javier Blas reports. (Source: Bloomberg)

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