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Ozark Pipeline Shutdown Will Limit Crude Capacity From Cushing

• Dan Murtaugh via Bloomberg.com
 

Enbridge Inc. (ENB)’s planned shutdown of the Ozark pipeline for 10 days starting June 10 will reduce capacity to move oil from Cushing, Oklahoma, the delivery point for futures on the New York Mercantile Exchange.

Enbridge will shut the line, which has the capacity to carry 215,000 barrels of crude a day to Wood River, Illinois, from Cushing, for planned maintenance, said Larry Springer, a Houston-based spokesman for the company. Monthly throughput will be reduced by 40 percent, he said.

The shutdown will cut takeaway capacity from Cushing by about 70,000 barrels a day for the month, said Andrew Lebow, senior vice president for Jefferies Bache LLC in New York.

“It will have a very modest impact, but it shouldn’t be a game-changer,” Lebow said. “Unless something goes wrong with the maintenance and the outage is longer, then it could become more significant.”

Crude supplies at Cushing fell 1.38 million barrels in the week ended April 26 to 49.8 million, according to Energy Department data. Inventories rose to a record 51.9 million barrels on Jan. 11.

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