• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 3 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 1 hour Iran downs US drone. No military response . . Just Completely Destroy their Economy. Can Senator Kerry be tried for aiding enemy ?
  • 5 hours The Inconvenient Truth Of Electric Cars
  • 5 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 1 hour Oil Demand Needs to Halve: Equinor
  • 15 hours Win Against Tyranny: Turkey's Opposition Strikes Blow To Erdogan With Istanbul Mayoral Win
  • 14 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 6 hours NATO Article 5: Attack on one member is attack on all. Members all must come to defense . . . NOT facilitate financial transactions to circumvent and foil US Sanctions. Somebody please tell Angela.
  • 3 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 2 hours The Plastics Problem
  • 2 hours Hydrogen FTW... Some Day
  • 5 hours Is $60/Bbl WTI still considered a break even for Shale Oil
  • 56 mins Section 232 Uranium
  • 12 hours California and Oil
  • 10 mins Solar Panels at 26 cents per watt
Exxon’s Huge Iraqi Oil Deal Under Threat

Exxon’s Huge Iraqi Oil Deal Under Threat

Contractual disagreements and the deteriorating…

China Replaces Venezuelan Oil With Canadian Imports

oil sands

Chinese refiners are buying more and more very cheap heavy Canadian crude oil to make up for the dwindling supply of Venezuela’s heavy grades as China’s road construction sector—a key consumer of the heavy oil’s bitumen yield—is booming.

China purchased 1.58 million barrels of heavy Canadian crude oil for loading in September, up by nearly 50 percent compared to the 1.05 million barrels it imported from Canada in April, Bloomberg quoted data by cargo-tracking and intelligence company Kpler on Thursday.

Analysts expect the Chinese purchases of heavy Canadian oil to continue to be high in October amid the typically peak construction season.

The high Chinese demand for bitumen-yielding heavy crude coincides with reduced supply of Venezuela’s Merey crude grade due to the crumbling production in the Latin American country. But more importantly, China is sourcing heavy crude from Canada at a bargain price—although international benchmark oil prices have rallied in recent weeks, Canada’s oil is heavily discounted due to severe bottlenecks because of a lack of pipeline capacity.

As of Wednesday, the price of Western Canadian Select (WCS)—the benchmark price of oil from Canada’s oil sands delivered at Hardisty, Alberta—traded at the huge discount of US$50 a barrel to WTI.

China’s appetite for bitumen-yielding heavy crude is expected to stay strong throughout the rest of the year, because infrastructure spending in the second half of 2018 is seen rising at five times the pace from the first half, according to Bloomberg.

Related: The Overlooked Giant In Renewables

Cheap Canadian oil could help the Chinese refiners processing it to book better refining margins. According to Kpler data quoted by Bloomberg, the Canadian heavy crude cargoes are being delivered at ports in China serving the smaller independent Chinese refiners—the so-called teapots.

Meanwhile, oil prices in Canada are plummeting.

The WCS discount to WTI grew to US$48 a barrel on Wednesday morning, the highest differential since at least 2011, according to Tim Pickering, founder of Calgary-based price tracker Auspice Capital, quoted by The Canadian Press. The Edmonton Sweet discount to WTI jumped to a multi-year high of US$27.50 a barrel, three times the typical size of the discount.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Dan on October 11 2018 said:
    I laugh at Canadians. In America we laugh at the situation since your government won't build pipelines. The Trump supporters love you guys!! In addition to this I can short your companies in Canada to make money on the market and since they won't make money they don't pay taxes and your population suffers again. So funny LOL...but honestly that's what you guys deserve be honest...you have screwed us on dairy...now its our turn to screw you on oil...loving it!!! BAHAHAHA
  • Mitch on October 11 2018 said:
    Where is this oil being exported from? BC?

Leave a comment

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