Market Pricing in Short Disruption From Pipeline Hack: Clearview

The video discusses a major fuel hack affecting the East Coast, causing market disruptions. Kevin Book from Clearview Energy Partners explains the situation, highlighting the lack of a robust Plan B and the market's muted reaction. The discussion covers potential government responses, including waiving the Jones Act and biofuel requirements. The impact on refineries and storage is also examined, with concerns about price divergence and logistical challenges.

What was the initial market reaction to the fuel pipeline hacking incident?

• No change in fuel prices

• A sharp increase in fuel prices

• A significant drop in fuel prices

• A slight decrease in fuel prices

According to Kevin Book, what is a major challenge in dealing with pipeline disruptions?

• Lack of alternative transportation routes

• Cyber hacking risks

• High fuel prices

• Insufficient fuel reserves

Why does the market seem to be pricing in a short disruption?

• Long inventories relative to historical norms

• Government intervention

• Low fuel supply

• High fuel demand

What is one potential source of additional fuel if the disruption continues?

• Local refineries

• European imports

• Middle Eastern imports

• Canadian imports

What is one action the government has taken in response to the pipeline disruption?

• Increasing fuel prices

• Allowing truckers to drive more hours

• Importing more fuel from Canada

• Building new pipelines

What is a potential consequence for refineries if the pipeline remains disrupted?

• Storage overflow

• Higher fuel demand

• Increased production

• Decreased fuel prices

What is a challenge associated with waiving the Jones Act?

• It conflicts with environmental policies

• It reduces fuel supply

• It goes against labor union interests

• It increases fuel prices