Futures Market News
Flow of crude pipeline stronger than believed
Jan 19, 2011 11:41 AM
The operator of the pipeline that transports more than one-tenth of crude oil produced in the U.S. said the supply of oil has grown stronger than anticipated, Bloomberg reports.
Alyeska Pipeline Service said 525,000 barrels were flowing through the system daily as of noon on Tuesday, an amount significantly larger than the 510,000 barrels-per-day rate originally targeted by the pipeline services firm..
"Oil continues to move smoothly through the pipeline," Alyeska said in a statement released with state regulators.
The pipeline resumed transporting oil on Monday after working around a leak. Repairs included the installation of a bypass.
Crude futures last week increased 4 percent, representing the largest rise in six weeks. The pump-station leak forced the 800-mile line to cease operations on January 8, which impacted oil companies and forced them to slash supplies to the U.S., which is the world's largest consumer of oil. The pipeline carries 11 percent of crude produced in the U.S.
Shortly after noon on Wednesday, Brent crude oil futures increased 0.45 cents, a 4.6 percent climb to $98.25 per barrel.
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