Mansfield Moves to Code Red, Colonial Sets Goal of Restoring Flow This Week

Fuel market conditions are evolving rapidly as the industry reacts to reports of the Colonial Pipeline outage. Many fuel suppliers have cut back supply availability, holding inventories in case of a prolonged pipeline outage. At least one Gulf refinery has already announced they would restrict utilization due to the outage.

The Colonial Pipeline Company said in a statement this afternoon that it has a goal of “substantially restoring operational service by the end of the week.” If that goal is met, the event would be a medium-term outage, resulting in shortages this week but a brief recovery time. If damages extend longer, it could be weeks before supply conditions improve.

Mansfield moved to Code Red at noon today in Alabama, Tennessee, Georgia, Florida, South Carolina, North Carolina, Virginia, and Maryland. In Code Red markets, customers are asked to provide 72-hour notice for new deliveries.

Mansfield is also on Code Orange for Louisiana, Mississippi, Arkansas, and Kentucky, requesting 48-hour notice. Because carrier capacity was strained before the outage, fuel trucks may need to be pulled from surrounding markets to serve impacted areas.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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