West Texas Crude Losing Ground as Oil Benchmark: Energy Markets

The shutdown of a U.S. oil pipeline that caused prices to fluctuate twice as much as in Europe is adding to concern that the benchmark contract for crude is failing to reflect supply and demand for energy.

The eight-day closing of the Enbridge Energy Partners LP 6A pipeline, which moves 670,000 barrels a day of Canadian oil to the U.S., caused West Texas Intermediate crude futures to trade in a $5.29 range on the New York Mercantile Exchange last week. That compares with $2.65 for the Brent contract in London.