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BRIEF-Crude flows on Capline pipeline soar as Gulf Coast barrels seek a home
January 26, 2016 / 8:37 PM / 2 years ago

BRIEF-Crude flows on Capline pipeline soar as Gulf Coast barrels seek a home

HOUSTON, Jan 26 (Reuters) - Crude flows on Marathon Petroleum’s 1.2 million barrel per day Capline pipeline were nearly double the monthly average on Tuesday as an open arbitrage pulled barrels from the oversupplied U.S. Gulf Coast to the Midwest, according to Genscape

* Flows from Collierville, Tennessee to Patoka, Illinois hit 613,000 barrels per day on Tuesday, up from an average of 273,000 bpd this week, according to the Genscape report

* Light Louisiana Sweet (LLS) WTC-LLS crude traded at the St. James, Louisiana hub fell to its lowest level since October at the end of last week, averaging an 80-cent a barrel premium to WTI

* Weak LLS price have made the economics of moving the light, sweet crude from the Gulf Coast to the Midwest favorable, traders said

* Pipeline flows on the Capline have averaged 320,000 bpd so far this month, up from 310,000 bpd in December, according to Genscape

* The Capline pipeline is operated by Marathon Petroleum in a joint venture with Plains All American Pipeline and BP Plc. It transports crude from the St. James, Louisiana hub to Collierville, and onto either Valero’s Memphis refinery in Tennessee or to the Patoka, Illinois storage hub (Reporting by Liz Hampton)

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