Traders Fret On Supply Challenges, On No Timelines For TC Pipelines-Backed Keystone Pipeline

Vandana Singh
1 min read
0
In this article:

  • Last week, TC Pipelines LP (NYSE: TRP) shut down the Keystone Pipeline System after an oil leak into a creek in Washington County, Kansas, the largest U.S. crude oil spill in nearly a decade.

  • The company did not outline the cause of the leak, and the time it would take to clean it up.

  • Traders expressed worry that the shutdown is expected to hamper deliveries of Canadian crude both to the U.S. storage hub in Cushing, Oklahoma, and to the Gulf.

  • "For the most part, there is a concern in the trading community (the pipeline) is not up yet," a U.S.-based dealer said.

  • Citing analysts, Reuters reported that if the outage lasts more than ten days, it could push Cushing, Oklahoma, storage levels to near the operational minimum of 20 million barrels.

  • Concerns over the pipeline outage shrinking supplies at Cushing helped boost the U.S. benchmark up 4% to about $73.90 in morning trade.

  • Prices for sour crude grades in the U.S. Gulf of Mexico were strengthening on Monday, as the shutdown means more demand for heavier Gulf barrels.

  • Differentials at Magellan at East Houston and WTI Midland crude were weakening, keeping levels at Cushing stronger and exports weaker, one trader said the Reuters report noted.

  • Price Action: TRP shares are down 0.07% at $42.27 on the last check Monday.

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement

Recommended Stories