Western Canada Crude Inventories Hit 2020 Low as Cenovus Outage Cuts 10% of Oil Sands Output
Updated
Updated · Reuters · Jun 11
Western Canada Crude Inventories Hit 2020 Low as Cenovus Outage Cuts 10% of Oil Sands Output
1 articles · Updated · Reuters · Jun 11
Summary
Western Canadian crude inventories have dropped to their lowest since 2020, falling more than 4 million barrels in two weeks and nearly 8 million since late February.
Heavy rains in northern Alberta slowed oil sands mining, while a power outage at Cenovus's Foster Creek and Christina Lake operations temporarily knocked out about 10% of the company's oil sands production.
That supply squeeze is tightening flows to Cushing, Oklahoma, and U.S. Midwest refiners, with U.S. crude inventories down 79 million barrels since the Iran war began and Cushing nearing operational lows.
Canadian barrels are also being pulled overseas as Asian buyers seek safer supply; the Trans Mountain pipeline is running at full capacity for the first time since its expansion.
Western Canada Select prices have strengthened accordingly, with the discount to WTI narrowing by about $4 since the end of May amid an already tight global market.