• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 33 mins US after 4 more years of Trump?
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 3 days Permian in for Prosperous and Bright Future
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 31 mins Something wicked this way comes
  • 2 days Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 1 hour Why NG falling n crude up?
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 15 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!

Breaking News:

Norway’s Oil Fund Is Buying Bitcoin

A Major Power Play In Libya

A Major Power Play In Libya

The conflict in Libya is…

The Holy Grail of Endless Energy: Harvesting Blackholes

The Holy Grail of Endless Energy: Harvesting Blackholes

Fifty years ago, British mathematical…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Alberta Production Cuts Send Canadian Crude Soaring

Canadian crude oil shot up by 35 percent on Monday, narrowing the huge gap with West Texas Intermediate thanks to a controversial decision by the Alberta government to impose production cuts of 325,000 bpd until excess supply in storage clears.

The Financial Post reports Western Canadian Select ended trade at US$29.95 a barrel, after on Friday it closed at US$21.93 a barrel. According to Bloomberg, the discount of WCS to WTI is now US$6 smaller, at US$23 a barrel. For a while on Monday the gap was even narrower, at US$19.75 a barrel.

Alberta’s Premier Rachel Notley announced on Sunday that the government of the province will enact an 8.7-percent crude oil production cut, in place until the glut in storage clears. Afterwards, the cut will be reduced to 95,000 bpd, to remain in place until the end of next year.

Producers’ stocks naturally reflected the good news, and there may be more on the way if OPEC agrees to a production cut tomorrow in Vienna. The Financial Post quoted an asset manager, Eric Nuttall from Ninepoints Partners as saying, “If there is a cut of at least one million barrels per day … then I think you’ll see WTI rally to over US$60 and you could have a 50 per cent rally in many of these (stocks) simply because they’ve fallen so dramatically.”

Yet not everyone in the local oil industry is thrilled with the production cut. Suncor was against it when the idea was first floated, proposed by the chief executive of peer Cenovus. The cut seems to be working, however, and that should be welcome news right now: yesterday Reuters reported weather-related power disruptions had occurred on two major Canada-U.S. pipelines, Keystone and the Mainland system. The two can ship a combined 1.79 million barrels of oil and other liquids daily.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News