Oil spill reported at key U.S. storage depot

Local media in Oklahoma reported Monday a company was working to contain a release of crude oil from near the main U.S. oil storage hub in Cushing.

News9, a CBS-affiliated television station in Cushing, Okla., reported a release from a pipeline controlled by the Seaway Pipeline Co. The release was reported Monday morning, though no spill volume was available.

"As emergency responders work on clean up, law enforcement says the spill is not a threat to residents and no evacuations have been ordered," the report read.

There was no statement available from Seaway. The pipeline is run by a joint venture between Enbridge and Enterprise Products Partners, which operates the 400,000 barrel per day artery.

The Seaway pipeline runs from the Cushing storage hub to the southern U.S. coast. The direction of the pipeline was reversed in 2012 in order to reduce transportation costs and accelerate development of crude oil reserves in North America. The capacity was expanded from 150,000 bpd before the reversal.

The release from the Seaway pipeline is the second associated with the Cushing storage hub in less than a month. Plains All American Pipeline reported problems with infrastructure from Colorado City to Cushing earlier this month.

Deliveries to and from Cushing could impact data on crude oil storage later in the week and skew market perceptions. An increase in storage is indicative of supply-side pressures, while a draw would support a market characterized by strong demand.