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Keystone oil spill could tighten US Gulf crude stocks
Canceling Keystone pipeline was ‘foolishness’ amid record-high gas prices: Rep. Wittman
Rep. Rob Wittman, R-Va., argues the U.S. could be importing oil directly from ‘our friends’ in Canada if the Keystone XL Pipeline wasn’t canceled.
An oil spill that shut TC Energy's Keystone pipeline in the United States on Wednesday could squeeze crude inventories at the country's primary storage hub and in two main refining regions, the Midwest and Gulf Coast, analysts and traders said on Friday.
The Keystone line is a key artery bringing more than 600,000 barrels of Canadian crude per day (bpd) to various parts of the United States. It was shut late Wednesday after leaking more than 14,000 barrels of oil into a creek in Kansas, making it the largest crude spill in the United States in nearly a decade.
Canadian crude prices have already slumped on the news, widening on Thursday to a discount of roughly $33 per barrel to benchmark West Texas Intermediate crude futures (WTI) – which is currently trading at about $72 a barrel – from about $27 on Wednesday.