Oil prices fall as US pipeline repaired

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Oil prices dropped on Wednesday following news that repairs to a key pipeline from Canada to the United States were almost complete, analysts said.

The market was also lower before the latest weekly snapshot of energy inventories in the United States, the world's biggest consumer of oil.

New York's main contract, light sweet crude for delivery in October, shed 1.14 dollars to 75.66 dollars a barrel.

Brent North Sea crude for October lost 65 cents to 78.51 dollars.

"The fall in oil prices came after Enbridge said that repairs to its key Line 6A Canadian-US pipeline were nearly complete," the Commonwealth Bank of Australia said in a note to clients.

Enbridge has already submitted a restart plan to authorities, with an official saying that the line "should be up and running in some form or fashion by the end of the week," according to media reports.

Line 6A carries 670,000 barrels of crude and light synthetics per day, accounting for one third of Canada's oil exports to the United States.

The closure of the line last Thursday has supported prices over the past several days.


© 2010 AFP

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