$10 Handle On WCS
Wow! Canadian crude traded with a $10 handle!
That is frickin’ stunning. Production is stranded and nowhere to go. Can’t use oil tankers for storage as they can’t get it to port.
Here’s to wishing we had some caverns in Canada to fill up with WCS.
Before 2018, the average price gap for Edmonton Mixed Sweet was about US$4 a barrel, in Bloomberg data going back to mid-2014. It hit a record discount of US$39 this month.
Canada’s lighter grades are getting slammed by the same forces affecting heavy crude – namely, a pipeline bottleneck that’s made it tougher to ship product, along with refinery outages during maintenance season in the U.S. Midwest. As a result, an increasing amount of crude is being transported by rail and truck. Some executives in the oil patch have also called on the Alberta government to intervene and impose production cuts, aimed at bolstering prices. – The Globe and Mail, November 27th
Hat Tip: The Polish Rifle, Dougie Skrypek