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Business

A major U.S. oil pipeline shut down after explosion

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Business

A major U.S. oil pipeline shut down after explosion

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COMING UP:A major U.S. oil pipeline shut down after explosion

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Transcript

00:00:00
>>
NOISE] A
massive explosion at a crucial oil pipeline in eastern Alabama, killing one worker on the spot and sending gasoline futures soaring Tuesday. A segment of the Colonial Pipeline was undergoing maintenance Monday when a crew hit line one, the main gasoline line, with an excavator, causing fuel to explode.
00:00:22
Reuters' energy reporter, Devika Krishna Kumar.>> Colonial Pipeline is the largest, refined products pipeline system in the US. It transports more than 3 million barrels of gasoline, diesel and jet fuel every day. So, as you can imagine, its two main lines, the gasoline line and the distillates line, being down is going to have a huge impact on the market.
00:00:44
As soon as the news came out, US gasoline futures jumped as much as 13%.>> This is the sixth time this year in Alabama alone that parts of the Colonial Pipeline system have been shut down. Back in September a pipeline rupture spilled over 330,000 gallons of gasoline around the same location, leading to gas price spikes in several southern states.
00:01:06
>> Shippers are already bracing for an outage of at least a week on the gasoline line. Which means they have already started inquiring about cargos and how they can transport fuel from the Gulf Coast to some of these markets on the East Coast. We had a Barclay's analyst stoned earlier today that said in an optimistic scenario, we're looking at an outage of at least one month on line one.
00:01:33
>> Monday's explosion also causing two wildfires around the area. Houses around the blast were quickly evacuated.