NEW YORK (Reuters) – TC Vitality Corp’s Marketlink oil pipeline from Cushing, Oklahoma, to Nederland, Texas, was shut as flooding disrupted operations at U.S. Gulf Coast terminals, merchants conversant in the matter mentioned on Thursday.
Harmful flash floods inundated elements of southeastern Texas on Thursday as Tropical Melancholy Imelda dumped the final of its rains, with the Nationwide Hurricane Heart predicting rain totals as much as 35 inches (89 cm) in some coastal areas.
Vitality Switch LP’s Nederland terminal, positioned between Beaumont and Port Arthur, was additionally shut attributable to heavy rain, 5 market sources mentioned.
The terminal had an influence outage earlier within the day nevertheless it had since been restored, Vicki Granado, a spokeswoman for Vitality Switch mentioned in an electronic mail.
The 750,000 barrel-per-day (bpd) Marketlink pipeline connects to the Nederland terminal, market sources mentioned, forcing the road to be shut.
TC Vitality didn’t reply to a request for remark.
The closure of the pipeline weakened costs at Cushing, with front-month U.S. crude futures widening to as a lot as 10 cents a barrel low cost to the second month, on expectations that barrels will probably be backed up on the storage hub.
Cushing is the supply level for benchmark U.S. crude futures and inventories there have dropped for 11 weeks in a row by Sept. 13. [EIA/S]
Phillips 66 additionally shut operations at its Beaumont Terminal in Nederland, Texas, as a security precaution attributable to flooding.
Exxon Mobil Corp (XOM.N) shut its 369,024 bpd Beaumont, Texas, crude oil refinery on Thursday due to flooding from Imelda, sources conversant in plant operations mentioned.
Different refineries in southeast Texas in the reduction of manufacturing as heavy rain continued to fall for a second day from Houston to western Louisiana.
Reporting by Devika Krishna Kumar and Laila Kearney in New York; Modifying by Nick Zieminski and Marguerita Choy