Critics of the Keystone XL project argue the pipeline will drive up gasoline prices for U.S. consumers by shrinking the discount applied to WTI. In a report Tuesday, Natural Resources Defense Council and ForestEthics Advocacy said the pipeline will divert supplies from the Midwest to the Gulf Coast, where refiners produce more diesel for export.
TransCanada has long denied the XL pipeline would drive up American pump prices, saying it will not divert crude from other markets, but will increase supplies in the Gulf Coast, helping reduce prices overall.
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