Global Markets: Two major pipelines facing different problems

Compiled by Glen Hallick, MarketsFarm

WINNIPEG, May 10 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– A major United States pipeline remained shut down on Monday after a cyber-attack on Friday forced the Colonial Pipeline Company to halt operations. With more than 5,500 miles of pipeline, Colonial supplies about 45 per cent of the fuel consumed along the U.S. East Coast. A ransomware organization calling itself Darkside has claimed responsibility. Reports stated that Darkside initially surfaced in August and avoids targeting companies in Russia and other former Soviet Bloc countries.

– Meanwhile, another major pipeline carrying oil and natural gas from Alberta and Saskatchewan to Eastern Canada is to be ordered shut down on Wednesday. The Enbridge Line 5 pipeline which runs through Michigan to Sarina, Ont. was ordered by the state’s governor to cease operations on May 12. Enbridge said it’s fighting the order in U.S. federal court. In recent years the 58-year-old pipeline, which moves 540,000 barrels per day, has been plagued by issues, including being struck twice by ships’ anchors. Since 2018, Enbridge has had plans to encase the pipeline in a tunnel at the Straits of Mackinac, but has yet to start any actual construction.

– The U.S. Navy reported it seized a large cache of weapons on Sunday that was aboard a stateless vessel in the Arabian Sea. Crew members from the U.S.S. Monterey boarded the vessel which was carrying anti-tank missiles, assault rifles, sniper rifles, machine guns, and grenade launchers that were made in Russia and China. The USN said its investigation is continuing to determine the source of the weapons and the vessel’s destination.


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