Pipeline Crash in Southwest Suburbs may Push Crude Prices Higher

A recent crash in the southwest suburbs killed two men and led to the shutting down of a main pipeline that can affect crude oil prices.

The crash occurred in an unincorporated location close to New Lenox. According to the police, two cars were driving alongside each other when they hit a chain-connected fence and damaged a pipeline of crude oil.

The collision resulted to the burning of the vehicles and the pipeline. Consequently the incident killed two men which include a firefighter. It also caused major injuries to three other people.

The pipeline of Enbridge Energy, a Canadian-based company, transports crude oil every day amounting to 318,000 barrels from Superior, Wisconsin to Mokena, Illinois. The line was closed since the burning crash and the officials said that it may not operate anytime soon.

The incident occurs as supply concerns are currently pushing crude oil prices higher.

In the early parts of the previous week, crude oil price per barrel reached a high level of $106.99. That further increased to $110.55 a barrel following news in Saudi Arabia of another pipeline accident. Later on, prices fell back to $106.70 when officials from Saudi Arabia denied the reports.

In the meantime, New Lenox keeps on mourning the loss of Posen Fire Department’s 25 year old firefighter paramedic Mr. Zack Orel. Mayor Tim Baldermann extends the town’s condolences, prayers and thoughts to the family of the firefighter.

The mayor said that New Lenox is a community with members who are closely tied to one another, that is why many people are surely affected with the loss of the five young men of their town.

An investigation regarding the incident is on-going and the police have not yet released any specific information, even to the family members of the victims.

By Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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