Eugene Island Crude Weakens as Shell Prepares to Restart Pipe

Crude from the Eugene Island formation in the Gulf of Mexico weakened after a Royal Dutch Shell Plc (RDSA) said it expects to restart a pipeline that had been shutting in production of 38,000 barrels a day.

Shell is planning normal operations “in the coming days” for a 16-inch pipeline that carried crude from Caillou Island to Houma, Louisiana, Kim Windon, a Houston-based spokeswoman for the company, said in an e-mail. The pipeline is part of Shell’s Eugene Island system, and connects platforms in the Gulf to the mainland.

Shell shut the line March 25 after detecting a sheen in water near it. After conducting tests, it confirmed the leak was not related to the pipeline’s operations, Windon said.

Crude from the Eugene Island formation weakened by $2.10 to a premium of $10.90 a barrel above the U.S. benchmark in Cushing, Oklahoma, at 1:39 p.m. East Coast time, according to data compiled by Bloomberg. The premium is the lowest since July 3.

Mars Blend, a medium-sour crude from the Gulf, strengthened by 45 cents to a premium of $8.75 a barrel to WTI. Crude from the Poseidon formation gained 30 cents to $8.40 a barrel more than the U.S. benchmark.

Southern Green Canyon crude weakened 35 cents to $7.40 more than WTI while Thunder Horse lost 85 cents to a premium of $10.90 a barrel.

Light Louisiana Sweet, the benchmark for light, sweet crudes on the Gulf Coast, increased 15 cents to $14.05 a barrel more than WTI. Heavy Louisiana Sweet narrowed 15 cents to $13.95 above WTI.

To contact the reporter on this story: Dan Murtaugh in Houston at

To contact the editor responsible for this story: Dan Stets at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.