PSXP - Why Pipeline Stocks Are Tumbling Today
Pipeline stocks are getting pulverized today. Several were down more than 10% by 12:30 p.m. EDT on Monday, including Energy Transfer (NYSE: ET), Phillips 66 Partners (NYSE: PSXP), ONEOK (NYSE: OKE), and Crestwood Equity Partners (NYSE: CEQP). Driving down shares of these pipeline operators was an unexpected legal setback and the cancellation of a major pipeline project.
The U.S. District Court for the District of Columbia ordered that the Dakota Access Pipeline shut down and empty by Aug. 5 for further environmental review. The pipeline had been transporting oil out of North Dakota for the past three years. However, it previously faced a series of legal setbacks during construction, which delayed its in-service date.
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