Aug. 8 (Bloomberg) -- Crude from the Bakken shale formation weakened against the U.S. benchmark West Texas Intermediate after a pipeline from Clearbrook, Minnesota, to the Twin Cities area was shut because of a leak.
Bakken fell 50 cents a barrel to a discount of $4.50 a barrel over WTI at 2:08 p.m. New York time, according to data compiled by Bloomberg. Koch Pipeline Co. LP is testing the line that closed near Foley, Minnesota, and doesn’t have an estimate on when it will return to service, said Jake Reint, a company spokesman based in Rosemont, Minnesota.
“You have two refineries in Minneapolis that are serviced by the pipeline,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston. “So the longer that delay goes on, the more oil is going to get backed up into the mainline systems.”
Oils produced on the Gulf Coast strengthened against WTI. Light Louisiana Sweet gained 45 cents to a $5.90 premium. Heavy Louisiana Sweet rose 50 cents a barrel to a premium of $5.40 a barrel over WTI.
Southern Green Canyon weakened by 15 cents a barrel to a discount of 75 cents under WTI.
Poseidon strengthened 30 cents a barrel to a premium of 20 cents. Mars Blend’s premium widened 15 cents to 40 cents.
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