Enbridge pipeline shutdowns curtail output to U.S. markets

Enbridge Inc.’s shutdown of Alberta pipelines capable of moving 1.17 million barrels a day toward U.S. markets is shrinking output and boosting U.S. oil to the highest level against Europe’s benchmark crude since 2011. The company’s Athabasca and Waupisoo lines, carrying oil from northern Alberta’s rapidly expanding oil sands operations to hubs farther south, remained closed Tuesday, with the exception of a segment from Cheecham to Hardisty. Nexen Inc. and Suncor Energy Inc., facing transportation limits, cut production. Restricted pipeline flows to the U.S., dependent on Canada for one-fourth of oil imports, is buoying U.S. benchmark West Texas Intermediate crude to the highest level against European counterpart North Sea Brent in nearly 30 months. A prolonged outage would support a further narrowing of the WTI-Brent gap.