Pipeline outage may boost US pump prices - AAA
NEW YORK, Nov 29 (Reuters) - An explosion that crippled a major oil pipeline to the U.S. Midwest could trigger a spike in pump prices in the coming weeks, travel and auto group AAA said on Thursday.
The Enbridge Pipeline system (ENB.TO) (EEP.N), which brings more than a million barrels of Canadian crude into the United States each day, shut flows Wednesday after a blast in Minnesota that killed two workers.
U.S. oil prices surged $4 after the news.
The incident "has the potential to boost the prices of refined petroleum products in the Midwest and parts of the Northeast over the next few weeks," AAA said in a release.
"The reason prices reacted so quickly is the Great Lakes refiners that normally receive crude oil via this pipeline may quickly be forced to purchase and receive their oil by other means if they are to stay operational," AAA said.
"Since these arrangements may take some time to accomplish, it is possible the prices of refined products - including gasoline and diesel - could spike in the affected region over the next few days or weeks," it said.
U.S. retail gasoline prices were running at $3.10 a gallon on Thursday, 86 cents higher than a year ago. (Reporting by Richard Valdmanis; editing by Jim Marshall)
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