Sign Up for FREE Daily Energy News
 
BREAKING NEWS:
Copper Tip Energy Services
WEC - Western Engineered Containment
Hazloc Heaters
WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy

Canada Crude Discount Hits Widest in 2019 as Output Limit Eased


May 21, 2019  by Kevin Orland
(Bloomberg)

Heavy Canadian crude’s discount to the U.S. benchmark blend expanded to the widest this year as Alberta increases output limits and oil-sands producers forge ahead with new projects.

Western Canadian Select traded at $15.75 less per barrel than West Texas Intermediate on Tuesday, the widest discount since Dec. 31. The differential had been as narrow as $6.95 a barrel in January.

The discount is widening after Alberta increased the amount it’s allowing drillers to produce, easing an unprecedented curtailment program put in place last year amid a collapse in local crude prices. The limit was set at 3.71 million barrels a day for June, up 150,000 barrels from when the curtailment was enacted.

Oil-sands producers including Canadian Natural Resources Ltd., Cenovus Energy Inc. and Imperial Oil Ltd. also are pushing ahead with expansions, while new export pipeline projects such as Enbridge Inc.’s Line 3 expansion have faced further delays.

The widening discount has a silver lining in that it makes Canadian crude more economical to move to refineries by rail, a more expensive transport option that has become increasingly important as Alberta’s pipelines remain overwhelmed.



Share This:



More News Articles


New SHOWCASE Directory Companies

 

Alliance Borealis Canada Corp.
Millennium Directional
U of C Executive Education
Kicker Video
John Brooks
Stress Engineering
RAE Engineering
DRYAIR Manufacturing Corp.