Global Markets: Canada stepping into Line 5 dispute

Michigan governor calls pipeline 'a ticking time bomb'

Compiled by Glen Hallick, MarketsFarm

WINNIPEG, May 12 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– The Canadian government announced on Wednesday it will intervene in the possible shut down of Enbridge’s Line 5 pipeline that runs through Michigan carrying oil and gas to Eastern Canada. Michigan Governor Gretchen Whitmer said Line 5 is an environmental danger, calling it a “ticking time bomb,” particularly where it crosses the Straits of Mackinac. Lawyers representing Canada said that Line 5, which carries more than 540,000 barrels a day, is vital to the Canadian economy. Since 2018, Enbridge has had plans to encase Line 5 at the straits, but has yet to physically begin the work. Earlier this week, Whitmer threatened to shut down the pipeline, but a U.S. federal court ordered the state and the company to resolve the problem through mediation.

– Tensions in the Middle East were escalating on Wednesday with the threat of an Israeli invasion of Gaza looms as the violence continues. Palestinian militants have to date, fired nearly 1,100 rockets into Israel, of which approximately 850 were intercepted by Israel’s anti-missile system. Of the rockets that struck targets, six Israelis have been killed. In response, Israel launched hundreds of air strikes on Gaza, killing 53 people including 14 children, which leveled a number of buildings. The latest round of deadly clashes began when Israelis celebrated the capture of then East Jerusalem in the Six-Day War.

– Fuel shortages largely due to hoarding were cropping up in the southeastern U.S. on Wednesday, as the shutdown of the Colonial Pipeline continued for a sixth day. The amount of stations running out of gasoline ranged from nearly three per cent in Tennessee to almost 25 per cent in North Carolina, with significant closures reported in Georgia, Virginia, South Carolina, Florida and Maryland. A ransomware attack on Colonial’s computer systems forced the shutdown, with a group calling itself Darkside claiming responsibility.

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