Oil Tops $100 A Barrel – With Video
Tweet
CNBC:
U.S. crude futures rose more than $2 to above $101 a barrel on Wednesday, on news of plans to reverse the Seaway pipeline in 2012 to relieve an oil glut in Cushing, Okla.
Enbridge and Enterprise Products Partners [EPD 45.02 -0.11 (-0.24%) ], which owns the other 50 percent of the 350,000 barrel-per-day Seaway pipeline, said on Wednesday they plan to reverse the pipeline that currently moves oil from the U.S. Gulf Coast to the oil storage hub at Cushing. Reversing the pipeline will increase the flow of crude from Cushing, the delivery point of the New York Mercantile Exchange’s oil futures contract, to the Gulf Coast.
The reversed line could be in service at an initial capacity of 150,000 barrels per day by the second quarter of 2012, Enbridge said. Station additions and modifications needed to ramp up flow rates to 400,000 barrels per day will be completed by early 2013.
Inventories in the U.S. Midwest have swelled this year due to rising supplies from Canada and North Dakota, helping to drive the premium of Brent crude to U.S. oil futures to record highs over $28 a barrel in October.
 |
|