Good news, car drivers: The pump price for gasoline is headed
south. And the trip appears to be one-way.
There are several reasons why it is getting cheaper to drive.
One has to do with West Africa, another with China, a third with
Saudi Arabia and a fourth with Europe. But the main reason has to
do with a 30-inch crude oil pipeline between Oklahoma and the
Gulf of Mexico.
Known as the Seaway pipeline, it carries crude oil, known as
West Texas Intermediate (
), from a huge terminal complex at Cushing, Okla., to the Texas
Gulf Coast. Earlier this week the pipeline's owners completed
expanding the pipeline's capacity from 150,000 barrels per day to
400,000 barrels per day. That increase in WTI supplies gave
gasoline refiners on the Gulf coast an alternative to a much more
expensive crude oil, known as Brent blend, that they have been
importing from Europe. Refiners have been forced to pay for Brent
because there has not -- until this week -- been adequate
pipeline capacity to transport less-expensive WTI from Cushing to
the Texas Gulf Coast.
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International Business Times