#Diamond_Pipeline disrupts oil flows around U.S.
The Diamond Pipeline has
scrambled crude oil flows around the U.S. Gulf Coast and Midwest
since it opened in December, cutting supply at the Cushing hub
and hammering Louisiana oil prices.
The line from Cushing, Oklahoma to Memphis, Tennessee, a
joint venture between Plains All American Pipeline LP
and Valero Energy Corp , has dented volumes on the
Capline system - the nation’s largest crude pipeline that runs
from the Gulf to key refineries in the Midwest.
Prices for Gulf Coast crude grades traded in the Louisiana
region have been hit hard.
The 440-mile long Diamond line feeds Valero’s Memphis,
Tennessee refinery, which has a capacity of about 190,000 bpd.
Valero has historically moved large volumes from North Dakota’s
Bakken shale region by rail to Louisiana and then shipped it up
Capline, a long and expensive route, traders said.
In December, Marathon Pipe Line LLC said it would reverse
Capline, pending agreement among owners, to initially send about
300,000 bpd of crude south beginning in the second half of 2022.
However, if supply is getting stuck in Louisiana as a result of
Diamond, the additional crude from Capline could worsen that