Heavy prices falls on Keystone shutdown report

Thu Oct 18, 2012 11:14am EDT
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CALGARY, Alberta (Reuters) - Canadian heavy oil prices fell on Thursday as an oil market surveillance firm reported that the 590,000-barrel-per-day Keystone oil pipeline had been shut down.

Western Canada Select heavy blend last traded at $20 under the West Texas Intermediate benchmark, compared with a day-earlier settlement price of $17 under the benchmark, according to Shorcan Energy Brokers.

Market sources said the drop was due to a Genscape report that the pipeline, which takes Canadian oil as far as the Cushing, Oklahoma, storage hub, had been shut down on Wednesday night.

(Reporting by Scott Haggett; Editing by Jeffrey Benkoe)