Crude oil gains more as US pipeline shutdown continues

Crude oil traded higher on Tuesday morning as the key Canada-US petroleum pipeline remained shut, impacting the supply of the energy commodity.

At 10.01 am on Tuesday, February Brent oil futures were at $78.89, up by 1.15 per cent, and January crude oil futures on WTI were at $74.02, up by 1.16 per cent.

December crude oil futures were trading at ₹6,131 on Multi Commodity Exchange (MCX) in the initial trading hour of Tuesday morning against the previous close of ₹6,088, up by 0.71 per cent, and January futures were trading at ₹6,165 against the previous close of ₹6,125, up by 0.65 per cent.

Creek not source of drinking water

Without giving any timeframe for the reopening of the Keystone Pipeline System, Canada’s TC Energy said in a media statement that it is continuing with the response and recovery effort at the Keystone Pipeline System Milepost 14 incident site in Washington County, Kansas, US.

An accident last week led to the closure of the pipeline after 14,000 barrels of crude oil spilled into a creek in Kansas.

The statement said the company has recovered 2,598 barrels of oil and water from the creek and clarified that the creek does not connect to a source of drinking water.

“Our commitment to the community is that our response efforts will continue until we have fully remediated the site,” it said.

With a capacity to transport 622,000 barrels of crude oil a day, the pipeline ships heavy Canadian crude from Alberta to refiners in the US Midwest and the Gulf Coast. The shutdown of this pipeline after the accident is affecting the supply of Canadian crude to the US storage hub in Cushing, Oklahoma, and to the Gulf.

The market is now waiting for the release of US consumer inflation data later in the day. This data is likely to be factored into the US Fed’s monetary policy, which is expected on Wednesday.

Dhaniya, guar gum slip

December zinc futures were trading at ₹291.65 on MCX in the initial trading hour of Tuesday morning, against the previous close of ₹289.40, up by 0.78 per cent.

On the National Commodities and Derivatives Exchange (NCDEX), December dhaniya contracts were trading at ₹8,568 in the initial trading hour of Tuesday morning against the previous close of ₹8,710, down by 1.63 per cent.

December guar gum futures were trading at ₹12,300 on NCDEX in the initial trading hour of Tuesday morning against the previous close of ₹12,364, down by 0.52 per cent.



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