Crude heads for record close, above $77
marketwatch.com
Excerpts:
"This is not a one-off, single spot corrosion event that can readily be replaced by a small unit of pipe," said Dennis Gartman, offering his view on the situation in his daily markets round-up. "Rather, this may indicate that the entire pipeline may be in jeopardy."
Gartman said the production cut is "likely to last quite some while...weeks certainly...months possibly...and the winter lies just ahead."
Reports that the Energy Department, to make up for any shortfall, would consider dipping into the nation's Strategic Petroleum Reserve, set aside for emergencies, had little impact on the benchmark crude contract.
"The oil in the U.S. SPR is in the wrong neighborhood to do any good," said John Kilduff, senior vice-president of energy risk management at Fimat USA. |
