Keystone Oil Pipeline Shutdown due to Oil Spill

  • On Sunday, Canada’s TC Energy said it had not yet determined the cause of the Keystone oil pipeline leak in the United States last week.
  • The pipeline operator said that more than 250 people are working on the leak, including third-party environmental specialists.

On Sunday, Canada’s TC Energy (TRP.TO) said it had not yet determined the cause of the Keystone oil pipeline leak in the United States last week. In addition, It gave no timeline as to when the pipeline would resume operation. The 622,000 barrel-per-day Keystone line is a critical artery shipping heavy Canadian crude from Alberta to refiners in the U.S. Midwest and the Gulf Coast. TC shut the pipeline after more than 14,000 barrels of crude oil spilled into a creek in Kansas on Wednesday, making it one of the largest U.S. crude spills in nearly a decade.

The pipeline operator said that more than 250 people are working on the leak, including third-party environmental specialists. It continuously monitors air quality, and presently, there are no indications of adverse health or public concerns. Nevertheless, keystone’s shutdown will hamper deliveries of Canadian crude both to the U.S. storage hub in Cushing, Oklahoma and to the Gulf, where it is processed by refiners or exported.

Oil prices rose as much as 1% on Monday as a key pipeline supplying the United States remained shut. At the same time, Russian President Vladimir Putin threatened to cut production in retaliation for a Western price cap on its exports. The price gains on Monday for Brent and WTI came after both grades fell last week to their lowest since December 2021 amid concerns that a possible global recession will impact oil demand. Brent crude futures were up 41 cents, or 0.5%, at $76.51 a barrel by 0730 GMT. U.S. West Texas Intermediate crude was at $71.55 a barrel, up 53 cents, or 0.8%.

 

 

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