Tuesday, September 14, 2010

Crude Oil Is Little Changed as Enbridge Works on Pipeline

Crude oil was little changed as Enbridge Energy Partners LP prepared to weld a new section to a pipeline that was shut last week and U.S. retail sales climbed for a second month. Oil dropped as much as 0.9 percent after work began on Enbridge’s Line 6A, which transports 670,000 barrels a day of Canadian crude to refineries in the central U.S. Prices rebounded from the day’s lows after the Commerce Department reported that purchases increased 0.4 percent following a 0.3 percent gain in July that was smaller than previously estimated.

“We are all waiting to see what happens with the Enbridge pipeline,” said Carl Larry, president of Oil Outlooks and Opinions LLC in Houston. “Any news that comes out will have the ability to move the market.” Crude oil for October delivery fell 9 cents to $77.10 a barrel at 9:11 a.m. on the New York Mercantile Exchange. Futures settled at $77.19 yesterday, the highest level since Aug. 11.

Brent crude oil for October settlement, which expires tomorrow, slipped 5 cents to $78.98 a barrel on the ICE Futures Europe exchange in London. The more actively traded November contract dropped 13 cents to $78.94. Canada is the largest exporter of crude to the U.S., sending 2.2 million barrels a day in June, according to the Energy Department. Refiners in the region may obtain supplies from Cushing, Oklahoma, the Midwest oil-storage hub, driving up futures traded in New York.

From Bloomberg News


No comments: