JP Morgan (NYSE:JPM) oil analysts said the continued suspension by Enbridge (NYSE:EEP) of its damaged pipeline could result in close to 300,000 barrels of oil a day less than normal being delivered.
It could also extend longer than normal. JP Morgan said, "Such leaks are not unusual, and in normal circumstances we would expect the line to be up and running in a matter of days, but a rapid restart of the most recently shuttered pipeline is unlikely because of a 'lengthy' environmental review process."
The estimate by JP Morgan includes the provision of alternative routes to transport some of the oil.
Dubbed Line 6A, the pipeline transports crude oil from Canada to refineries in the U.S.
Early in the day Enbridge said they're searching for a variety of ways to deliver the oil until the pipeline is fixed.
The company said, "Enbridge's schedulers are working with shippers to divert crude oil volumes to other available pipelines and storage facilities."
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