Heavy Canadian Crude Falls to Record Low
(Bloomberg) -- Heavy Western Canadian Select crude fell to a record low as several oil producers shut in production and some demand the Alberta government intervene to mandate across-the-board cuts.
The oil-sands benchmark fell $2.29 to $13.46 a barrel Thursday, the lowest in Bloomberg data extending back to 2008. The price broke a previous record set in early 2016, when West Texas Intermediate crude futures were trading under $30 a barrel amid a world-wide supply glut.
The price collapse comes as pipeline bottlenecks in Western Canada constrain exports just as WTI experienced a record losing streak amid rising U.S. stockpiles and projections for reduced demand.
Producers including Canadian Natural Resources Ltd. and Cenovus Energy Inc. have responded to the price drop by curtailing what could amount to as much as 140,000 barrels a day or more, according to company statements. Some operators have gone further, asking that Alberta’s government mandate production cuts across the province.
Western Canadian Select at Hardisty, Alberta, traded at $43-a-barrel discount to WTI Thursday, $2.50 wider than on Wednesday, data compiled by Bloomberg show.
With assistance from Kevin Orland. To contact the reporter on this story: Robert Tuttle in Calgary at email@example.com. To contact the editors responsible for this story: David Marino at firstname.lastname@example.org Mike Jeffers, Margot Habiby.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.