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UPDATE 1-U.S. pipeline to double oil volume as wildfire cuts Canada supply -sources

Published 2016-05-10, 12:24 p/m
© Reuters. UPDATE 1-U.S. pipeline to double oil volume as wildfire cuts Canada supply -sources
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(Updates with background on wildfire, pipeline)
NEW YORK, May 10 (Reuters) - Crude oil moving from the U.S.
Gulf to the Midwest through the country's largest pipeline is
expected to double in volume in May on increased shipper demand,
two sources familiar with the matter said on Tuesday, after a
wildfire severely reduced Canadian supply.
The 1.2 million barrel per day Capline pipeline, which moves
crude from St. James, Louisiana, to Patoka, Illinois, is
expected to run as much as 600,000 bpd this month, up from the
300,000 bpd to 350,000 bpd expected previously, the sources
said.
The blaze at the center of Canada's oil sands region started
on May 1 and has since reduced a little more than 1 million bpd
from producers and pipeline operators that have shut facilities
as precaution, impacting oil sand supplies that are mostly
exported to the U.S.
Due to the increased volume on the Capline, shipping time
was also expected to decrease to two weeks from three weeks
previously, the sources added.
Capline is operated by Marathon Petroleum Corp (NYSE:MPC) MPC.N and
also owned by Plains All American Pipeline LP PAA.N and BP Plc
BP.L .
Last month, Marathon's top executive said that the pipeline
- once a major artery to deliver imports and Gulf of Mexico
crude to the U.S. Midwest - will likely be reversed to move
heavy Canadian crude south to Louisiana.
A Marathon spokeswoman declined to comment.

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