X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 4 hours Retired RAF pilot wins legal challenge over a wind farm
  • 6 hours U.S. Presidential Elections Status - Electoral Votes
  • 12 hours Speaker Pelosi, "Tear Down This Wall"
  • 40 mins Interest article about windmills and waterwheels in Europe
  • 23 hours NYT:  The Supreme Court’s order (Re:  Trump’s tax returns) set in motion a series of events that could lead to the startling possibility of a criminal trial of a former U.S. president
  • 1 hour Chance for (Saudi)Arabian peninsula having giant onshore Gas too?
  • 17 hours Disaster looming in UK offshore wind power
  • 1 day Wednesday Nikki Haley reached out to Trump for meeting at Mar-a-lago. Trump said No ! You blew it Nikki . . .
  • 1 day “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 2 days Minerals, Mining and Industrial Ecology
  • 1 day Scientist clone endangered Black Footed Ferret from Ferret that died 30 years ago . It's a 100% exact genomic match.
  • 1 day Pipeline vs Train vs Ship to Transport Crude Oil.
  • 1 day NG spot prices hit triple digits for weekend delivery
Could This Be The Most Exciting Lithium Play Of 2021?

Could This Be The Most Exciting Lithium Play Of 2021?

This Nobel Prize-winning breakthrough is…

Canadian Crude Prices Sink On Cold Snap

The price of Western Canadian Select oil is falling thanks to a brutal cold snap in Western Canada, where temperatures less than 20 below are literally freezing Canada’s oil, making it less viscous and difficult to transport.

But that’s not the only oil problems Canada is having due to the cold. Refineries have been disrupted due to the cold, and barrels that can’t be shipped via pipeline due to capacity constraints must be shipped by rail—and trains move slower in the cold as well, Bloomberg reported on Wednesday.

The price of a barrel of WCS has fallen to $35.33 as of Tuesday, from $40.77 just ten days ago. While some of the fall is in line with other oil prices that have fallen this week on geopolitical tensions easing and persistent worry that the China/US trade deal may not boost oil demand growth as much as the market would like, the gap between WCS and WTI has widened, from $22.50 per barrel on January 6 to $22.90 on Tuesday.

Already Canada has restricted production to shrink the gap between the two benchmarks, although it has eased some of these production restrictions as the gap between the two began to shrink last year.

Most of Canada’s oil exports make their way to the United States, with its heavy, sour crude finding a willing market in the US Gulf Coast refineries, which typically set the price of the WCS to WTI differential due to their strong buying power for the grade.

If Canada’s oil production does not fall in line with its falling ability to export its oil in the cold—where the cold and heavy oil must be mixed with extra condensate to keep it flowing—the gap between WTI and WCS will continue to widen.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Glen Breaks on January 16 2020 said:
    That's quite a story with a lot of awful negatives listed for an actual 40 cent change in differential, just a typical daily fluctuation!

Leave a comment

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