Gasoline futures pulled back Wednesday as the Colonial Pipeline, the main fuel artery to the East Coast, remained closed.
Gasoline fell 0.67 cents, or 0.45%, to $1.4779 a gallon on the New York Mercantile Exchange.
Colonial Pipeline Co. said Tuesday that it expected its main gasoline pipeline to be down through the end of the week, but fuel could begin flowing again Saturday. That helped cool gasoline markets, which had jumped as much as 15% Tuesday?the biggest intraday gain in eight years?on fears that the outage would disrupt fuel supplies in the region.
"Products gave back sharp Colonial Pipeline explosion-related gains after the company said that they would restart the pipeline on Saturday. Yet wewill still see a huge impact on supply in the meantime and we could still see spot shortages and higher prices on the retail level," Phil Flynn, senior market analyst at the Price Futures Group, wrote in a client note Wednesday.
The pipeline was struck by construction equipment Monday afternoon, which sparked a fire that killed one person and injured several others. That fire was still burning as of late Tuesday, according to a company official.
Colonial's diesel pipeline, which also transports jet fuel, was also shut following the incident but has resumed operations.
(END) Dow Jones Newswires
November 02, 2016 10:05 ET (14:05 GMT)
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