GREY:LSTMF - Post by User
Comment by
norim109on Dec 17, 2012 4:01pm
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Post# 20741614
RE: Pipeline expansion
RE: Pipeline expansion
The expansion, early January, of the Seaway pipeline to 400,000 Bpd will decreasethe gap between Brent and WTI oil prices and will likely result in higher prices for Canadian light oil, low sulphur.
NEW YORK, Dec 17 (Reuters) - Brent crude prices dipped on Monday while U.S. oil futures rose as news of a key U.S. pipeline expansion will be completed next month and optimism about a deal to avoid the "fiscal cliff" prompted spread tradingbetween the two contracts. The discount of U.S. crude to the international Brent benchmark narrowed by more than 80 cents following news Enterprise Products Partners LP and partner Enbridge Inc would complete a 350,000 barrel per day (bpd) expansion to the 150,000 bpd Oklahoma to Texas Seaway pipeline in earlyJanuary. The increased capacity will allow more crude to the Gulf Coast from the Cushing, Oklahoma delivery point for the U.S. oil futures contract, where a glut of oil from rising Canadian and U.S. flows has depressed domestic prices relative to coastal and international prices.