Restrictions on supplies transported on the Seaway pipeline prompted West Texas Intermediate crude oil futures to hover on Tuesday, according to Bloomberg.
That pipeline will not ship its capacity of 400,000 barrels per day because it cannot do so, operators said. But strong generation in the U.S., the globe's largest consumer of the energy commodity, has prompted rail routes to compensate for the pipeline's shortfall.
"Seaway isn't going to reach full capacity when people were expecting," chief market strategist Bill O'Grady with Confluence Investment Management in St. Louis told the news source on Tuesday. "Other routes have been developed to make up for the delayed start of the line. When there's an arbitrage this big, the market is going to find ways to profit from it."
At 11:47 a.m. on Tuesday, WTI crude oil futures fell 0.07 percent, a 7-cent loss to $95.79 per barrel. At 11:48 a.m., Brent crude oil futures fell 0.42 percent, a 49-cent loss to $116.89 per barrel.
The Wall Street Journal reports crude oil futures are hinging on economic data regarding supplies after U.S. markets were closed on Monday for the observance of Presidents' Day and markets in China were closed last week for observance of the Lunar New Year.
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