March 29, 2011 / 9:15 PM / 9 years ago

UPDATE 2-Enbridge line overbooked as Cushing awash in oil

* Ozark line apportioned at 87.7 percent

* Capacity available on Spearhead line to Cushing (Adds details of U.S. oil inventories, prices. In U.S. dollars)

CALGARY, Alberta, March 29 (Reuters) - Oil shippers facing brimming supplies at the Cushing storage hub in Oklahoma far overnominated for capacity on an Enbridge Inc (ENB.TO) oil line from the site, forcing the company impose tight restrictions in April.

Enbridge said on Tuesday that shippers looking to move crude on its Ozark line to Wood River, Illinois, next month tried to book space for nearly 1.9 million barrels a day, more than eight times the line’s capacity of 232,000 bpd.

The company said just 12.3 percent of the volumes nominated will flow.

Meanwhile, there is unbooked capacity on the 193,000 bpd Spearhead pipeline, which runs to Cushing from Flanagan, Illinois, Enbridge said.

The apportionment on Ozark reflects the glut of crude at Cushing, which the American Petroleum Institute reported on Tuesday rose 1.7 million barrels to 41.9 million barrels.

Overall U.S. stockpiles rose a higher-than-expected 5.7 million barrels to 356.4 million, the API said. [API/S]

High inventories at Cushing, the delivery point for the New York Mercantile Exchange crude futures contract, have contributed to a discount on U.S. oil compared with world benchmark Brent crude.

That spread widened a few cents on Tuesday to $10.37 a barrel.

Volumes have built up as crude production from Canada’s oil sands and Bakken unconventional fields in North Dakota and Saskatchewan has climbed over the past year. (Reporting by Jeffrey Jones; editing by Rob Wilson)

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