Crude oil prices rise after Colonial Pipeline cyberattack

Crude prices rose Monday after a cyberattack shut down the largest pipeline system in the U.S. 

Oil was about 1% higher. 

Colonial Pipeline Co. operates the 5,500 mile system taking fuel from the refineries of the Gulf Coast to the New York metro area. 

The pipeline transports more than 100 million gallons a day, or roughly 45% of fuel consumed on the East Coast, according to the company's website. It delivers fuels including gasoline, diesel, jet fuel and heating oil and serves U.S. military facilities.

While most experts expect gasoline prices to be unaffected if the pipeline is back online in the next few days, Yury Dvorkin, assistant professor of electrical and computer engineering at the New York University Tandon School of Engineering, told FOX Business that a prolonged shutdown's effect on prices could be comparable to that of Hurricane Sandy. 

Colonial Pipeline said in a statement Sunday that its operations team was developing a system restart plan. 

"While our mainlines (Lines 1, 2, 3 and 4) remain offline, some smaller lateral lines between terminals and delivery points are now operational," the company said. "We are in the process of restoring service to other laterals and will bring our full system back online only when we believe it is safe to do so, and in full compliance with the approval of all federal regulations."

According to Colonial, the attack involved ransomware, where an attacker seizes control of computer systems to demand a payoff. However, the company has not said what was demanded, who has made the demand, or whether a ransom has been paid.

The FBI, Department of Energy (DOE) and  Cybersecurity and Infrastructure Security Agency (CISA) have all said they are working in collaboration with Colonial Pipeline to get to the bottom of the attack. A DOE spokesperson told FOX Business the department "is monitoring any potential impacts to energy supply." FireEye Inc., a U.S.-based cybersecurity firm, is also investigating the attack, according to people familiar with the matter.