Keystone is back, Western Canadian differential tightens

Canadian and U.S. morning comments

November 28, 2017

TransCanada announced repair and restart plans for its Keystone pipeline. Operations on the pipeline are expected to commence Tuesday, November 28, 2017, at reduced pressure in order to ensure a safe and gradual increase in the volume of crude oil moving through the system.

South Dakota’s Public Utilities Commission (PUC) regulators may still conduct a formal review of pipeline operations. However, it appears that a potential crisis may have been averted. Without objection from the Pipeline and Hazardous Materials Safety Administration (PHMSA), it does not appear that volumes will be impacted going forward unless the PUC finds any wrong-doing and revokes permits.

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