Traders Fret On Supply Challenges, On No Timelines For TC Pipelines-Backed Keystone Pipeline - TC Energy

Last week, TC Pipelines LP (NYSE:TRP) shut down the Keystone Pipeline System after an oil leak into a creek in Washington County, Kansas, the largest U.S. crude oil spill in nearly a decade.
The company did not outline the cause of the leak, and the time it would take to clean it up.
Traders expressed worry that the shutdown is expected to hamper deliveries of Canadian crude both to the U.S. storage hub in Cushing, Oklahoma, and to the Gulf.
"For the most part, there is a concern in the trading community (the pipeline) is not up yet," a U.S.-based dealer said.
Citing analysts, Reuters reported that if the outage lasts more than ten days, it could push Cushing, Oklahoma, storage levels to near the operational minimum of 20 million barrels.
Concerns over the pipeline outage shrinking supplies at Cushing helped boost the U.S. benchmark up 4% to about $73.90 in morning trade.
Prices for sour crude grades in the U.S. Gulf of Mexico were strengthening on Monday, as the shutdown means more demand for heavier Gulf barrels.
Differentials at Magellan at East Houston and WTI Midland crude were weakening, keeping levels at Cushing stronger and exports weaker, one trader said the Reuters report noted.
Price Action: TRP shares are down 0.07% at $42.27 on the last check Monday.

To add Benzinga News as your preferred source on Google, click here.