The Colonial is the lifeblood of supply and pricing to the eastern seaboard and this shutdown if prolonged, meaning more than a week, this will havea serious effect on prices of all gasoline grades, diesel and jet fuel. The key point is that this is a physical supply artery of refined products into New York Harbor where the daily cash futures prices are set. If and when NYH futures spike they will also jump in Ontario and Quebec overnight. We’ll see today what happens to the futures when the traders get ahold of this development.
The last time the Colonial went down was because of Katrina. That was physically fixable. This time I’m not so sure.