US gasoline futures spike on Colonial pipe explosion in Alabama

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Three other workers on the crew escaped injury.

Photo via Alabama Gov. Robert Bentley's Twitter feed. On Tuesday, he declared a state of emergency to temporarily ease limits on the hours that truckers carrying gasoline may drive.

The explosion and fire Monday killed one employee of a subcontractor and injured seven others. Investigators have not determined a cause.

A group of first responders watch a large plume of smoke near the scene of an explosion of a Colonial Pipeline, Monday, Oct. 31, 2016, in Helena, Ala.

Mayor Hall said Helena's police chief and fire chief have been in contact with Colonial Pipeline. Wright said that switchover happened in September, but this latest pipeline shutdown occurs as the holiday travel season gets ready to hit full swing.

"After the incident occurred, Colonial shut down its two main lines, which traverse Shelby County", the company said.

On September 9, Colonial Pipeline reported a spill in Shelby County, and shut down the line that had leaked. The company also said that as a precaution, containment booms have been deployed at two different locations on the Cahaba River.

North Carolina Governor Pat McCrory's Press Secretary issued a statement Monday saying, "Governor McCrory and emergency management officials are monitoring the situation closely for any impact on North Carolina", and they "are prepared to take action if necessary". The fire was contained late Monday night at the site.

US gasoline futures spike on Colonial pipe explosion in Alabama

"It's very unfortunate what's happened with this pipeline", she said.

From 3,000 feet in the air, a flame could be seen still burning in a haze of smoke Tuesday.

Another woman who lives in the area, Beth Mitchell, said there are a few subdivisions in the area close to the explosion. Several others, who were not in critical condition, were expected to be sent to area hospitals and many will need decontamination.

Gasoline in NY jumped the most in nearly eight years, and its premium to crude prices soared 60 percent after an explosion and fire in Alabama shut the largest fuel pipeline in the USA, killing one person and injuring more. One reason gasoline supply was impacted was motorists changing their consumption habits in response to the distribution shortages, Wright said.

AAA said the shutdown is likely to cause gas prices to rise in the southeastern and mid-Atlantic regions of the country.

For the second time in two months, a pipeline that supplies gasoline to millions of people is shut down, raising the specter of another round of gas shortages and price increases.

A pipeline explosion on Monday shut down the flow of gasoline and diesel along the East Coast, potentially impacting prices at the pump for weeks. That prompted dry pumps and higher prices in Alabama, Georgia, Tennessee, South Carolina and North Carolina.

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