Why is wcs oil so cheap

There has been a lot of media coverage on why Canadian heavy oil (Western Canadian Select) is selling at a big discount. We explain what happened to the spread (why it's wide right now) and what Canadian heavy oil trading at 'outrageous' $40 discount as global prices rally Global oil prices are eyeing US$100 — Canadian oilpatch will be lucky to crack US$50 Why Is Canadian Oil So Cheap Right Now? (USO) but upstream in Canada it put downward pressure on WCS amid a glut of supply. Canadian oil was diverted into storage as the pipeline underwent Why Canada just pumps out cheap oil. the profit margin a refiner can earn from using WCS is less than they would get from WTI. So refiners are paying Canadian producers less per barrel as a For climate activists, the low price of Canadian oil is good news. The oilsands have some of the world's highest costs for starting new operations, so low oil prices mean few new projects will be NOT ALL OIL IS EQUAL: EXPLAINING PRICE DIFFERENCES Since the oil in WCS is much heavier than WTI (which is a light oil), and further away from main markets, WCS is priced at a further discount to WTI. generally heavier than WCS, and so dil-bit is priced at a discount to WCS. Why is Canadian oil so cheap? Canadian oil producers have a terrible problem — and it's pushed the price of heavy crude below $18 a barrel for the first time since 2016

This should be common knowledge. No one wants to pay for oil that is stranded in tanks in Edmonton so the price drops to motivate people to find a way to move it. There's plenty of WCS oil selling for more than the spot rate but the issue is we approved a ton of production with a privately funded expansion of the TMPL all set to go.

measure potential impacts on the Canadian economy if low oil prices persist into the So while petroleum industry revenues and profits will fall sharply in coming oil output receives an even lower price: Western Canadian Select (WCS) – a 22 Aug 2019 The negatives for Canadian oil are multiple: Pipeline bottlenecks, heavier and groups continue to oppose the project, so more delays are possible. There will also be a “ceiling” on the WCS discount relative to WTI, “as free Inside we explain the differences between WTI crude vs. That's why it's been such a hot commodity for so long. Texas Intermediate, WTI is currently trading at more than a $7.00/bbl discount to another major oil benchmark: Brent crude.

I've read a few dozen other articles on the subject, which suggest that there have been refinery shutdowns in the area CNRL's pipeline flows to so there's less

He cautioned the upside from that higher price for producers would be limited since shipping a single barrel of crude oil on a train costs at least $12 versus roughly $4 via pipeline. “The spreads have been so wide that it incentivizes throwing everything at it to try and drive the [WCS-WTI discount] lower,” said GMP FirstEnergy’s King. Alberta oil companies could produce at least an additional 250,000 barrels of oil per day in 2018, she says, and the next pipeline export project to be complete, Enbridge's Line 3, could only This should be common knowledge. No one wants to pay for oil that is stranded in tanks in Edmonton so the price drops to motivate people to find a way to move it. There's plenty of WCS oil selling for more than the spot rate but the issue is we approved a ton of production with a privately funded expansion of the TMPL all set to go.

Inside we explain the differences between WTI crude vs. That's why it's been such a hot commodity for so long. Texas Intermediate, WTI is currently trading at more than a $7.00/bbl discount to another major oil benchmark: Brent crude.

22 Feb 2011 Demand for output from the refineries remains high though, so prices for refined Are the new low crude oil prices reducing PADD2 gasoline prices? First WCS (Western Canadian Select) the benchmark Canadian crude is Still, that leaves an uncomfortably long time for oil producers, who will have to struggle with painfully large discounts for WCS over the next year or so. By Nick Cunningham of Oilprice.com More Why Is U.S. Oil So Cheap? Refiner upgrades need to happen or WTI will be trading at a persistent discount to Brent much like WCS, if not to that extreme. Leave a comment. First Name. 3 reasons why Alberta oil prices have sunk. The divide between WCS and WTI has never been larger, according to Martin King, commodities analyst with Calgary's GMP FirstEnergy. The steep Why Alberta oil prices are so low, and what could happen if they stay that way WCS has sold, in recent weeks, at a historic low — around $50 less — than Western Texas Intermediate, a U.S The Economist explains Why is Alberta’s oil so cheap? Western Canadian Select recently hit a low of $11.43 a barrel. Explaining the world, daily The Economist explains. Nov 27th 2018. Why Is Canadian Oil So Cheap? By Irina Slav - Dec 12, 2017, 9:00 AM CST. Join Our Community. Western Canadian heavy crude’s price discount to WTI widened to the most in three years, at US$23 for

NOT ALL OIL IS EQUAL: EXPLAINING PRICE DIFFERENCES Since the oil in WCS is much heavier than WTI (which is a light oil), and further away from main markets, WCS is priced at a further discount to WTI. generally heavier than WCS, and so dil-bit is priced at a discount to WCS.

23 Feb 2016 WCS is North America's largest heavy oil benchmark comprised of: 20 A refinery will always pick the cheapest crude, so high shipping costs 22 Feb 2011 Demand for output from the refineries remains high though, so prices for refined Are the new low crude oil prices reducing PADD2 gasoline prices? First WCS (Western Canadian Select) the benchmark Canadian crude is Still, that leaves an uncomfortably long time for oil producers, who will have to struggle with painfully large discounts for WCS over the next year or so. By Nick Cunningham of Oilprice.com More