- The operator of the Colonial Pipeline, the biggest U.S. fuel pipeline system, says demand to transport gasoline to the northeastern U.S. is the weakest in six years, the latest symptom of a global oil market grappling with oversupply.
- The summer is typically when gasoline demand peaks as motorists hit the road for vacation, but Colonial says for the first time since 2011, demand for the pipeline is below capacity for a five-day period starting early next week.
- Demand normally exceeds the pipeline's space, forcing refiners and traders to supplement volumes through the pipeline with tanker shipments or imports.
- Colonial Pipeline connects Gulf Coast refineries with markets across the southern and eastern U.S. through 5,500 miles of pipelines that deliver gasoline, diesel, jet fuel and other refined products; it is owned by Koch Industries, South Korea’s National Pension Service, Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B) and others.
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Original article