petroleum pipeline in the United States was shut down over the weekend because of a cyberattack. The pipeline’s operator, Colonial Pipeline, hasn’t said when it will reopen, raising concerns about the infrastructure that carries nearly half of the fuel supplies for the East Coast.
By 7:30 a.m. Eastern Standard Time, futures of gasoline for June delivery were up 1.7 percent but still at the highest level since late 2018. The instability is contained to prices that traders pay for gasoline, but may affect prices at the pump in the coming weeks.
“Should the pipeline be brought online at the start of the week, the impact on prices should be limited,” Giovanni Staunovo, an analyst at UBS Global Wealth Management, wrote in a note. “However, a prolonged shutdown (5 days or longer) is likely to send gasoline prices higher, which already trade close to a 7-year high.”
Oil prices also rose. Futures on West Texas Intermediate, the U.S. crude benchmark, were up 0.6 percent to $65.29 a barrel, after climbing as much as 1.3 percent.
The increase in the price of gasoline and oil has added to what was already a boom in commodity prices. As economies from the United States to China have shown signs of strength, demand for raw materials to power industrial growth has risen. On Monday, iron ore futures rose as much as 10 percent and copper prices extended their record high.
A Bloomberg commodities index, which tracks the prices of 23 commodities from gold and oil to wheat and sugar, was at its highest level since mid-2015. Freeport-McMoRan, an American mining company, and United States Steel both rose more than 3 percent in premarket trading.
U.S. stocks were set to open slightly lower on Monday, futures indicated, pulling the S&P 500 back from a record high.
The benchmark stock index had risen on Friday after an unexpectedly weak jobs report tempered expectations about how soon the Federal Reserve would consider withdrawing some monetary stimulus.
The Stoxx Europe 600 was flat while the CAC 40 in France and DAX in Germany both fell 0.2 percent.
British local elections
The British pound rose 0.8 percent against the U.S. dollar and 0.9 percent against the euro after the results of Thursday’s local elections were confirmed. The Scottish National Party, which is pushing for a second independence referendum, fell one seat short of gaining an outright majority in its Parliament. But it will still govern with the support of another pro-independence party.
The pound’s gains on Monday were as much about the weak dollar as the election results, Kit Juckes, a strategist at Société Générale, wrote in a note. “I don’t know anyone who thinks the risk of a second Scottish referendum has gone away.” The pound can rise against the dollar because the U.S. currency “remains under pressure from global economic optimism,” he added.
The pound was at $1.41, the highest since February.