Completion of repairs to key oil pipeline from Canada to USA brings down oil

17-Sep-10

New York's main contract, light sweet crude for delivery in October has fallen by over a dollar to US$75.5, while Brent North Sea crude has settled at US$78.7. News of repairs to the key Line 6A Canadian-US pipeline nearing completion has brought down oil prices amid weak manufacturing figures. Line 6A carries 670,000 bpd of crude and light synthetics, accounting for one third of Canada's oil exports to USA. Enbridge has submitted a plan to restart the plant by end of week to authorities. Weak figures were partly compensated by figures showing that US crude oil inventories dropped last week. Industrial production in USA rose by a modest 0.2% in August, significantly slower pace than the 0.6% rise in July and slightly less than expected by analysts.