Crude oil prices plummet as OPEC bickers and the dollar rallies, but today the story that will grab attention is an explosion in the Colonial pipeline that will lead to higher gas prices and possible spot shortages along the East Coast. The explosion is on the same pipeline that was shut down a couple of months ago due to a pipeline leak.
Democratic Presidential Candidate Hillary Clinton announced that she opposed the construction of the XL Keystone Pipeline, which would carry more than 800,000 barrels of crude oil a day from Canada to the U.S. refinery network in the Gulf Coast.
Now that the U.S. government has cleared the Keystone XL project of any dire environmental impact, attention is returning to why the pipeline was needed in the first place: to get more Canadian oil to U.S. refineries.
A long awaited report on the XL Keystone pipeline stated what everyone knew all along, the State Department said the Keystone XL pipeline would not have a significant impact on global warming or greenhouse gasses.
Even the bulls are throwing in the towel, yet there may be signs that the crude collapse may slowdown just a bit. Still, oil is headed longer-term toward $88, a target we have had for weeks and now is looking more like we are going to be right on target.
Yesterday marked the fifth anniversary of TransCanada's application to the U.S. State Department for the 1,700-mile pipeline from Alberta to Texas known as the Keystone pipeline, the most famous pipeline in America even though it has not been built.