Crude-by-rail exports tumble 15% in Oct as cost differential tightens

The Canada Energy Regulator says exports of crude-by-rail fell by 15 per cent in Oct to 270,000 barrels per day from 319,600 bpd in September.

The Oct series is a lowest in 6 months and good next a record high of 354,000 bpd set in Dec of 2018.

The regulator blames a diminution on narrower cost disproportion between prices Western Canadian Select bitumen-blend oil in Alberta and U.S. benchmark West Texas Intermediate in New York.

It costs some-more to boat oil by rail than by pipeline, so wider differentials are compulsory for a use to be profitable.

The Alberta supervision has pronounced it expects crude-by-rail shipments to arise after it announced a module during a finish of Oct to concede producers who supplement rail-shipping ability to boost their production.

The volume of oil that vast companies are authorised to furnish in Dec was set during 3.81 million bpd — adult from 3.56 million bpd when a provincial curtailment module started final January.

Article source: https://www.cbc.ca/news/canada/calgary/crude-oil-rail-exports-october-price-differential-1.5404806?cmp=rss