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Genesis’ Cameron Highway Oil Pipeline System (CHOPS) outage has pushed crude away from Texas and prompted more volumes in Louisiana, weighing on medium sour prices there and lending itself to exports. Additionally, the crude that typically goes into CHOPS as Southern Green Canyon is slightly heavier and more sour, tweaking the stream qualities for Poseidon and Bonito.
Because of the increased volumes of sour crude going to Louisiana, and the slightly heavier and more sour crude being put into the Poseidon and Bonito streams, Louisiana crude discounts have been deeper to SGC market discussion. The resumption of the CHOPS pipeline will likely help rebalance that.
But some of the production that has shifted could continue to be shipped into the Louisiana streams as new buying relationships may have been formed.
