Shutdown Of Part Of Keystone, Platte Pipelines Could Squeeze Heavy Crude Supply

The shutdown of TransCanada Corp.’s Keystone and Enbridge’s Platte pipelines in Missouri, due to a possible leak, could squeeze U.S. refiners dependent on heavy crude, an analyst said Feb. 7.

The shutdown cuts off the flow of heavy crude oil from Canada, a major exporter to the U.S. It comes at a time when sanctions against Venezuela have stopped imports from that country, also a major supplier of heavy crude.

Already, the discount of Canadian oil to U.S. benchmark West Texas Intermediate (WTI) has expanded from $9.25 per barrel to $10.30 per barrel in the last day, Greg Haas, director of integrated energy research at Stratas Advisors, told Hart Energy.