1. Keystone pipeline shuts down after spilling over 5,000 barrels of oil in South Dakota.
The Keystone oil pipeline spilled more than 5,000 barrels of oil last week before TransCanada workers shut it down. Not the best news, coming just days before operators hope to secure a key permit for a sister project.
TransCanada released a statement late last week saying the leak was detected along a stretch of pipeline roughly 35 miles south of a pumping station in Marshall County, South Dakota.
They estimated just over 5,000 barrels of oil leaked out of the line before it went offline. The pipeline was shut down within 15 minutes of discovering the leak, and TransCanada is currently working with state regulators and the Pipelines and Hazardous Materials Safety Administration (PHMSA) to assess the situation.
2. Nigeria is showing signs of recovery.
The third quarter showed promising economic growth for Nigeria, as oil output rose to the highest since the beginning of last year. The GDP of Nigeria, Africa’s largest crude producer, increased nearly 1.5% in Q3 compared to last year. This rebound is fueled by their oil production increase to 2.03 million barrels, a revised estimate of 1.87 million barrels a day in Q2. This is great news for the African country as they strive to recover from 2016 - their worst annual economic slump in 25 years.
3. Oil slips as investors prepare for OPEC meeting next week.
Oil prices are down today, continuing the recent volatility ahead of the OPEC meeting next week. Brent crude futures LCOc1 are down 84 cents at $61.86, or 1.4%. U.S. West Texas Intermediate (WTI) crude futures fell 70 cents, or 1.2%, to $55.85 a barrel.
OPEC and Russia will be meeting next week to decide whether or not they will continue the supply cuts, and while most feel the cuts will continue, there’s still uncertainty in the air. “It is widely believed that OPEC together with 10 non-OPEC countries will roll over their production for the whole of 2018, although Russia is holding its cards close to its chest,” PVM Oil Associates strategist Tamas Varga said.