‘Weird situation’ : Analysts stumped as Canadian oil price surges $12 per barrel on Enbridge decision
by David Dias (feat. Kevin Birn)
June 6, 2018
The price of Canadian oil surged to a record US$12.20 on Monday — eliminating nearly half the discount to U.S. prices — as pipeline major Enbridge Inc. reversed a policy that would have made it more difficult for U.S. refineries to book capacity on its main artery into the U.S. Midwest.
With a glut of oil clogging pipeline capacity across North America, Enbridge had announced new rules that would have required shippers to prove volumes before they could book extra capacity on its Mainline system.
“Enbridge is concerned that shippers may be continuing to inflate their nominations to vie for space on the Mainline,” the company explained in its May 24 announcement.