Oil trades on NY exchange at over $100 per barrel

Oil trades on NY exchange at over $100 per barrel

Omaha : NE : USA | Nov 16, 2011 at 11:54 AM PST
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Morning Market Snapshot: June 6, 2011

A Bloomberg article suggests that the rise in price is caused by plans by Enbridge to reverse the direction of the Seaway oil pipeline. However uncertainty about Nigerian production and other factors may also contribute to the rise.

Enbridge has bought Conoco-Philipps share of a pipe line that runs from Cushing Oklahoma to the Gulf Coast. Reversal of the flow will allow oil from central U.S. states and Canada to flow to the Gulf Coast. Cushing Oklahoma had become a bottleneck in the system with large amounts of oil in storage. This lowered the price of oil.

Now the backlog is being cleared the price of oil has increased. The decision may to some degree mitigate the effects of the delay in approval of the planned Keystone XL pipeline.

TransCanada Corp. CEO Russ Girling said that the Keystone XL pipelines may now be able to gain State Dept. approval with six to nine months. It is now negotiating a changed route with the state of Nebraska that will not pass over the Ogalala aquifer.See this article..

However the U.S. State Dept. has claimed that studying the new routes would cause a longer delay of 12 to 18 months. The longer delay would postpone any decision until after the U.S. elections next year.

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The Keystone XL pipeline would pump oil from the tar sands of Canada's Alberta province to the Gulf of Mexico
The Keystone XL pipeline would pump oil from the tar sands of Canada's Alberta province to the Gulf of Mexico
northsunm32 is based in Brandon, Manitoba, Canada, and is an Anchor on Allvoices.
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News Stories

  • TransCanada: U.S. needs more oil pipelines

      United Press International
    New pipelines affiliated with the oil hub in Cushing, Okla., are needed to get to key market areas along the southern U.S. coast, a TransCanada official said. Enbridge Inc. and Enterprise Products Partners announced a decision to reverse the flow of...
  • Nebraska approves new pipeline route as TransCanada eyes early start

      Leader Post Online
    Nebraska's legislature on Wednesday unanimously approved a law that would reroute the Keystone XL pipeline, as TransCanada Corp. announced it could start building the southern portion of the controversial pipeline. Under the bill, the state would pay...
  • Oil stocks celebrate Enbridge deal

      The Globe & Mail
    Video Video Editors' Blog The deal comes as the oil storage hub in Cushing, Oklahoma experiences a glut of oil, which has been blamed for depressing the price of West Texas Intermediate oil relative to other oil benchmarks, including Brent crude. In...
  • Route Proposals May Ease an Oil Pipeline Bottleneck

      The New York Times
    Enterprise Products Seaway Crude Pipeline's pump station in Freeport, Tex...Both would try to solve one of the problems that the Keystone project was meant to address: the shortage of pipeline capacity for carrying oil from a main terminal in Cushing,...
  • Oil Futures Ease Slightly in Asian Trade

      International Business Times
    Covers the leading players in the finance industry Sample Oil prices surged Wednesday as investors cheered news about a pipeline stake sale that could potentially alleviate supply bottlenecks and boost demand for U.S. and Canadian crude. Must Read...
  • Pipeline switch pushes oil price above $100

      Star Tribune
    Oil climbed above $100 a barrel in New York to a five-month high as Enbridge Inc. said it will reverse the direction of the Seaway pipeline, adding an outlet for crude from the central U.S. and Canada. Futures surged 3.2 percent after Enbridge agreed...





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