Canada-US Pipeline Explostion Cuts Supply

An explosion at a Canadian crude oil pipeline has cut oil supplies to refineries in the US Midwest and caused oil prices to surge by more than US$3 a barrel.

Canadian owner Enbridge says the blast happened near its Minnesota terminal, killing two employees and forcing supply cuts to four of its pipelines.

The leak and explosion occurred on a pipeline which was undergoing maintenance, says Enbridge.

The company is working with federal and state authorities to begin an investigation into the incident but has not indicated when lines would be back up.

US crude prices jumped US$3.25 to US$93.87 a barrel, with Brent crude rising by US$1.93 to US$91.74 a barrel.

By staff writer