Sunoco Logistics shuts West Texas crude pipeline after “anomaly”
Sunoco Logistics Partners LP shut down its 300,000 barrel-per-day West Texas Gulf Pipeline that carries crude oil from the Permian Basin to the U.S. Gulf Coast on Wednesday after an “anomaly” was discovered, according to a notice the company sent to shippers that was obtained by Reuters.
It was not immediately clear what the problem on the Colorado City, Texas to Wortham, Texas, pipeline was, but the notice added that crews worked through the night to determine the return to service plan.
The shutdown of the pipeline pressured prices for West Texas Intermediate crude delivered into Midland, Texas <WTC-WTM> on Wednesday morning. WTI at Midland for March traded as low as $2.35 a barrel under the front-month light-crude contract versus Tuesday trades between $1.65 and $1.90 a barrel under WTI.
Traders said inventory levels in West Texas have seen rapid builds in recent weeks, particularly as high levels at storage tanks at the Cushing, Oklahoma, hub have forced traders to find storage space elsewhere.
The location of the problem was between its Blum Pump Station and Wortham facilities, the notice added.
A spokesman for the company could not be reached for comment.
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