Monday, March 5, 2012

Enbridge's (ENB) U.S. Pipeline Remains Closed

After a two-vehicle accident in Illinois close to the the township of New Lenox, the pipeline of Enbridge (NYSE:ENB), which delivers the majority of oil from Canada to the United States, remains closed, and may remain closed for up to four more days.

The accident took place by an above-ground part of the conduit close to a pumping station.

Enbridge's Line 14/64, which delivers 318,000 barrel a day, will probably result in pressuring prices for Canadian crude in response to the accident.

Line 14, may start up again as early as Wednesday, while Line 64, is estimated to restart on Thursday.

Enbridge spokeswoman Lorraine Little said these estimates are subject to change because they were the initial assessments made by the company.

The capacity for Line 14/64 is north of 2 million barrels a day, which amounts to close to 3 percent of American imports. Canada exports the oil from Alberta tar sands.

Potentially affected by the slowdown is Exxon Mobil (NYSE:XOM), which receives some oil from the pipeline, which they get at its refinery located in Joliet, Illinois. Exxon says at this time they are meeting contractual obligations.

Enbridge was trading at $38.34, down $0.38, or 0.98 percent, as of 12:16 PM EST. Exxon was trading at $86.63, up $0.30, or 0.35 percent.

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