Enbridge To Add Additional 1 Million Bbls Oil Storage At Cushing
April 29 2011 - 4:30PM
Dow Jones News
Enbridge Energy Partners said Friday it will build another 1
million barrels of oil storage capacity at Cushing, Okla., as crude
stockpiles in the area hover near record levels.
The additional storage, expanding on previous plans to add 3
million barrels of new tank space, would bring Enbridge's total
capacity at Cushing to 18.8 million barrels by the end of 2012,
spokesman Larry Springer said. Enbridge is the largest operator of
storage at Cushing, with 14.8 million barrels of capacity
there.
Enbridge's board of directors approved the additional storage
during a meeting on Friday. Several other storage operators at
Cushing have also announced plans in recent months to add more
storage and accommodate the growing oil flow.
The move should help alleviate the oversupply at Cushing, a
critical oil pipeline hub and the delivery point for the main oil
futures contract traded on the New York Mercantile Exchange. An
influx of oil from the central U.S. and Canada in recent months has
led to soaring supply levels at Cushing, depressing the price of
the Nymex contract compared with other crude grades and causing
many market players to question whether the contract accurately
reflects global prices.
On Friday, Nymex June futures settled up 1% at $113.93 a barrel,
while Brent futures were trading at $125.95 a barrel.
Oil inventories have held at just over 40 million barrels, a
record, since early March, according to the U.S. Energy Information
Administration.
-By Dan Strumpf, Dow Jones Newswires; 212-416-2818;
dan.strumpf@dowjones.com
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