Ice Storm Trips Power, Paralyzes Key U.S. Oil Hub

[Purveyor]

Source: Reuters

NEW YORK, Dec 11 (Reuters) - A deadly ice storm in the U.S. heartland triggered power outages that paralyzed parts of the most important U.S. oil hub, threatening supplies to the region's oil refineries.

The storm knocked out power to more than 800,000 in the U.S. Central plains and forced Enbridge (EEP.N: Quote, Profile, Research) to shut its 16.7 million barrel oil terminal at Cushing, Oklahoma, the delivery point of the New York Mercantile Exchange crude contract.

"Until we get power we cannot move the oil. There is some damage to our own distribution infrastructure, but right now it mainly depends on how quickly Oklahoma Gas and Electric can restore power to the area," said Enbridge spokesman Larry Springer.

TEPPCO Partners LP said it had closed its 4.5 million barrel Cushing storage terminal and cut throughput at the 350,000 barrels per day Seaway pipeline, which runs crude from the Gulf Coast to the NYMEX hub.

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"We hear that Cushing is pretty well shut-down," said Tom Hunter, general manager for the National Cooperative Refinery Association, adding that an outage of a week or more from the Osage line would force them to cut rates at its McPherson, Kansas refinery.

Read more: http://uk.reuters.com/article/oilRpt/idUKN1150170920071211

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Crude has jumped $2.00 on this news...