Alexa
  • Directory of Taiwan

Oil price surges after pipeline shuts down

Oil price surges after pipeline shuts down

Oil prices surged Friday after a pipeline that delivered oil to U.S. Midwest refineries was shut down, raising questions about how long the supply may be disrupted.
Benchmark oil for October delivery rose $1.89 to $76.14 a barrel in morning trading on the New York Mercantile Exchange.
Enbridge Energy Partners LP closed the pipeline Thursday afternoon after it began leaking in suburban Chicago. The leak has stopped and repairs started but there it is not clear when the line will reopen.
The pipe carried about 670,000 barrels per day from Superior, Wisconsin, to Griffith, Ind.
Although oil and gasoline inventories are plentiful, traders are concerned that Midwest supplies could tighten if the pipeline stays closed for some time, analysts said. In turn, that could send retail gasoline prices up in the Midwest.
Tom Kloza, publisher and chief oil analyst at Oil Price Information Service, speculated that Chicago-area motorists will see prices of $3 a gallon or higher. Much of that depends on how long the pipeline is shut down. A gallon of unleaded averages $2.86 in Chicago now, according to the Energy Information Administration.
In the aftermath of the BP oil spill in the Gulf of Mexico, Enbridge Energy officials likely will be "very, very deliberate" in making the repairs, Kloza said.
Enbridge Energy Partners is an affiliate of Enbridge Inc., headquartered in Calgary, Canada.
Oil prices also got an early boost from China trade figures, which showed an increase in crude imports, Tradition Energy analyst Addison Armstrong said.
The gains mirrored an increase in U.S. equities as investor concerns about slowing growth have been quieted at least partially by recent, more positive economic news.
In other Nymex trading in October contracts, heating oil rose 3.40 cents to $2.1024 a gallon, gasoline added 3.60 cents at $1.9714 a gallon. Natural gas gained 13.7 cents at $3.905 per 1,000 cubic feet.
In London, Brent crude rose 71 cents to $78.18 a barrel on the ICE Futures exchange.


Updated : 2021-08-01 10:27 GMT+08:00