Oil prices fluctuated Monday as markets reacted to news that Calgary-based Enbridge and a partner plan to reverse flow on a pipeline to the U.S. gulf coast two weeks ahead of schedule.
Enbridge and Enterprise Product Partners applied to the U.S. energy regulator Friday to have flow start on May 17 on the Seaway pipeline from Cushing, Oklahoma to the U.S. Gulf Coast.
Insufficient pipeline capacity has prevented a glut of oil in the Midwest from reaching refineries on the coast.
The line would carry up to 150,000 barrels a day.
Traders pushed the price of June Brent – the benchmark for the prices paid by Gulf refineries – down 2.3 per cent to $118.50 US a barrel while the price of Light Sweet Crude added five cents to $103.37 US.
That lowered the spread between the two prices to $15.13, compared with $19 US on Friday.