Since the start of this year, Canadian heavy crude oil prices have been steadily improving relative to the light crude oil benchmark of West Texas Intermediate (WTI). Improved access to and through the U.S. as far south as the Gulf Coast has contributed to these better conditions. At the same time, the traditional driver of increasing refinery demand after the end of the most recent maintenance season is being aided by the restart of two Midwest refineries that have typically been consumers of Canadian heavy oil. With international competitive pressures also easing and export buyers remaining active in the Gulf Coast, heavy oil prices could remain in a sweet spot for a good portion of this year. In today’s RBN blog, we look at why international competition for Canadian heavy crude will only intensify next year as vastly increased export access from Canada’s West Coast becomes available.
Synchronicity, Part 2 – Canadian Heavy Oil Prices Increasingly Linked to Global Oil Market Developments
