Keystone oil pipeline shutdown could quickly lead to higher gasoline prices

The nearly 2,700-mile Keystone oil pipeline was shut down Tuesday morning after it ruptured in North Dakota, halting the flow of millions of gallons of crude oil from Canada to refineries in the U.S. and potentially leading to higher gasoline prices.

South Bow, a liquid pipeline business that manages the pipeline, said it shut down the pipeline after control center leak detection systems detected a pressure drop in the system. The spill is confined to an agricultural field in a rural area, about 60 miles southwest of Fargo.

Ramanan Krishnamoorti, a vice president for energy and innovation at the University of Houston says "It will raise prices at the pump likely within one or two days, but will have a greater impact on diesel and jet fuel."

The Keystone pipeline transports a large amount of a unique, heavy crude that only is available from limited sources, he said.