Crude Prices Rebound as Investors Speculate Over Keystone Pipeline

by Nick Bond, KPI Bridge Oil
Wednesday October 2, 2013

Crude prices rebounded today and erased yesterdays drops after TransCanada Corp announced that the southern portion of its Keystone pipeline is nearing completion. 

Following the news, investors bought back into the market on speculation that the pipeline will help move more crude from Cushing to refinery locations in the Gulf. 

Prices also received an extra push from today's EIA Inventory report which showed that Cushing stockpiles fell again and are now at the lowest levels since February 2012. 

Gains were limited, however, as the report also showed refinery operations fell to 89% as they idle units for seasonal maintenance. 

Speculators may now direct their attention back to the situation surrounding the United States Government shutdown for any news, as many feel that a continued shutdown could lead to reduced demand for oil. 

WTI jumped $2.06 to settle at $104.10/bbl and Brent gained $1.25 to end the session at $109.19/bbl. Bunker prices were firm in the primary ports.

About KPI Bridge Oil

KPI Bridge Oil is one of the world's leading international bunker broking and trading firms. With a network of offices that covers every major time zone, we have an in-depth knowledge of ports and bunker markets around the world. Our access to real-time market information and long-established credit lines with suppliers means we use our buying power in the right place and at the right time. All this ensures our customers enjoy competitive prices - and on favourable terms.

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