• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 3 hours Oil prices going Up? NO!
  • 1 day Could Venezuela become a net oil importer?
  • 7 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 4 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 2 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 5 hours Could oil demand collapse rapidly? Yup, sure could.
  • 1 day Gazprom Exports to EU Hit Record
  • 2 hours Oil prices going down
  • 1 day EU Leaders Set To Prolong Russia Sanctions Again
  • 1 day Why is permian oil "locked in" when refineries abound?
  • 1 day Oil Buyers Club
  • 2 days Saudi Arabia plans to physically cut off Qatar by moat, nuclear waste and military base
  • 2 hours Saudi Arabia turns to solar
  • 1 day EVs Could Help Coal Demand
  • 2 days China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 20 hours Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
Oil Markets Turn Bearish Ahead Of OPEC Meeting

Oil Markets Turn Bearish Ahead Of OPEC Meeting

Oil prices fell on Tuesday…

The Fed Is Driving Down Oil Prices

The Fed Is Driving Down Oil Prices

The hawkish U.S. Federal Reserve…

Mexico’s U.S. Oil Sales Benefit From Canadian Outage, OPEC Cuts

Pipeline

As some supply disruption from Canada’s heavy crude oil supply to the U.S. is coinciding with reduced shipment to the U.S. from OPEC, analysts say that Gulf Coast refineries are expected to buy this month as much Mexican crude as they can, because higher Canadian crude prices make the similar Mexican grade cheaper and therefore more attractive.

According to Bloomberg, Syncrude Canada has advised customers that they would not get any April supply from the 350,000-bpd upgrader that turns bitumen from the oil sands into light synthetic crude. Following a fire at the upgrader last month, Syncrude Canada has moved forward its maintenance activities, people familiar with the matter told Bloomberg.

The Western Canadian Select grade was trading at a discount of $4.117 per barrel to Mexico’s similar Maya grade on Monday, the smallest discount since the May 2016 wildfires in Alberta, Bloomberg’s figures show. The small spread with the Mexican grade is too uneconomical to cover the $7 per barrel cost to send heavy Canadian crude to the Gulf via pipeline, Carl Evans, an analyst at Genscape Inc, told Bloomberg.

Probably the Gulf will take as much Mexican as it can,” Evans noted.

The price of Western Canadian Select also jumped to the lowest discount to WTI - $10.50 – in nearly two years, according to Bloomberg data.

U.S. imports of Mexican crude oil have been dropping since 2010, and halved from 1.152 million bpd in 2010 to 582,000 bpd in 2016, data by the EIA shows.

U.S. imports from Canada, on the other hand, jumped from 1.970 million bpd in 2010 to 3.256 million bpd in 2016, with new pipeline capacity opening up.

Related: Putin Says Russia Will Become World’s Top LNG Producer

The U.S. energy trade with Canada accounted for about 5 percent of the value of all U.S. exports to Canada and more than 19 percent of the value of all U.S. imports from Canada in 2016, according to EIA data from last month. For 2016, the value of U.S. energy imports from Canada was $53 billion, while the value of U.S. energy exports to Canada was $14 billion.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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