Western Canada energy producers enjoy higher oil prices as pipeline congestion eases: analysts
by Dan Healing (feat. Kevin Birn)
May 11, 2018
Canadian oil producers are pocketing higher profits as a rise in world oil prices meshes with an improving supply-demand balance that has reduced the price discounts they faced earlier this year.
Analysts say temporary shutdowns at Alberta oilsands projects for scheduled maintenance this spring have eased the pipeline congestion that had been exacerbating the difference between bitumen-blend Western Canadian Select and New York-traded West Texas Intermediate crude prices.
That means the oil producers — some of whom cut back output in the first quarter because of poor prices — are seeing benefits from WTI prices that rose to three-and-a-half-year highs above US$71 per barrel this week following U.S. President Donald Trump’s decision to withdraw from the Iran nuclear deal....