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TC Vitality (NYSE:TRP) declared drive majeure on its Keystone crude pipeline system on Monday, throwing shipments of Canadian oil to U.S. refiners into disarray.
In line with Bloomberg, a discover despatched to shippers mentioned the pipeline system was disrupted by an influence outage at a South Dakota pump station, the place temperatures topped 100 levels Fahrenheit Monday.
TC Vitality (TRP) mentioned the outage is underneath investigation however it’s not but identified when full service can be restored.
The drive majeure induced merchants and refiners to bid up the value of Canadian Chilly Lake heavy crude, narrowing the grade’s low cost for August supply to benchmark futures by greater than 8% to US$8/bbl.
Chilly Lake crude is favored by some Texas and Louisiana refiners outfitted to show it into gasoline, diesel and different merchandise.
The Keystone pipeline runs from Alberta into North Dakota, via South Dakota to Steele Metropolis, Nebraska, the place it splits, with one arm operating east via Missouri for deliveries into Illinois and the opposite operating south via Oklahoma to Cushing after which to the Texas Gulf Coast.
TC Vitality (TRP) “enjoys remarkably secure money flows no matter macroeconomic situations, which provides it a utility-like high quality,” Energy Hedge writes in an evaluation revealed just lately on Searching for Alpha.
