Shares of U.S. energy companies tied to the Dakota Access Pipeline rose on April 9 after the U.S. Army Corps of Engineers said it would allow the crude pipeline to run while it conducts an environmental review.
That move leaves a decision on whether to shut the pipeline with U.S. District Judge James Boasberg in the District of Columbia. On April 9, he gave Dakota Access operators 10 days to present a case to keep the line flowing.
Shares of North Dakota oil producers were trading higher. Oasis Petroleum Inc. was up 4.9% to $69.05 and Continental Resources Inc. had gained 2.7% to trade at $25.65. Enerplus Corp, which this week said it would acquire some of Hess Corp.’s North Dakota assets, was up 4% to CA$6.85.
Energy Transfer LP, the pipeline’s operator, also climbed more than 3.2% to $8.14, while Phillips 66 Partners LP, a 25% stakeholder, was up nearly 7.3% at $32.6, its highest since last August when an appeals court allowed the line to keep running.
A federal judge last year ruled the U.S. Army Corps of Engineers failed to produce an adequate Environmental Impact Statement for a segment of the line and ordered it shut and emptied.
On April 9, an attorney for the Army Corps of Engineers said it will likely have a decision on its latest review by March 2022.
It’s too soon to gauge the price impact on fuel or the data impact to Colonial Pipeline after a cyberattack forced its systems offline, experts say.
Oil prices are expected this week to drift sideways with an upward bias, while product prices in the Atlantic Basin will move upward until the Colonial Pipeline is back in service, says Stratas Advisors in its latest forecast.
Nearly half of the fuel consumed in the eastern U.S. passes through the Colonial network.