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Pipeline Closure doesn’t Affect the Oil Price

According to the new data by Gas Buddy, the Price of the Gas are still climbing to decade-level highs jumping nearly 20% on Monday and registering pandemic-level highs. The national cost for a gallon of gas just passed the $3 mark, averaging $3.04, and experts warn that closing more Pipeline could continue to dry out supply and pump up Price.

Phil Flynn said that there is a possibility of more shutdowns. Bill Hemmer Reports reported the shutdown can not be due to the terror attacks but because the Governor of Michigan wants to shut down another Pipeline. Closing the Enbridge would be a disaster for gasoline Price that are only starting to stabilize after the shutdown of the Colonial Pipeline.

Governor Gretchen Whitmer is calling to shut down the Line 5  which is owned and operated by Enbridge Inc., which has run crude oil through the cross-section of Lake Michigan, Lake Huron and the Straits of Mackinac for 70 years. In a recent Washington Post Op-Ed, the state’s Democratic governor said that she will take every action possible to shut them down, to protect two Great Lakes and the jobs that depend on them.

Line 5 which is owned by Enbridge Inc is part of the network that transports up to 23 million gallons of crude oil and other petroleum products per day from Superior, Wisconsin to Sarnia, Ontario, shortcutting through the state of Michigan. Governor doubles down on her calls to close down the Pipeline, lawmakers are raising concern that it could lead to another fuel scramble.

The Biden administration is targeting shutdowns which include the Dakota Access Pipeline. He withdrew the Keystone XL at the beginning of his administration. Biden’s executive order, 19 states are urging Biden to put back the following the gas shortages spurred by the Colonial attack. Secretary of Energy Jennifer Granholm recently admitted that using a  is the best way to transport fuel.Flynn also added that the consequence of the Colonial resulted in panic buying at the pump. The ensuing run-up in retail Price at the local gas station might only be a precursor of what could play out in the coming months.

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