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Glut sinks Canadian crude prices

The Financial Post -- Canadian crude oil is being sold at a steep discount over concerns that pipelines and refineries are unable to keep up with rising production.

Western Canada Select has fallen steadily over the last month, closing on Monday at its lowest level in a year at just US$61.41 a barrel. Even after recovering on Tuesday to US$65.91, Canadian crude was trading at little more than half of the global benchmark.

“A barrel of Western Canadian Select crude is one of the cheapest barrels of heavy, sour crude available in the world, as the Canadian market grapples with increases in production, pipeline constraints and lack of adequate refinery demand,” said a report by Platts, an energy market news service based in New York.

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Submitted Feb 08, 2012 By: Gronski1

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SkyWarnTX All-Star Author Texas Posts:945 Points:56,845 Joined:Jan 2012	Message Posted: Feb 9, 2012 8:35:21 PM Ignore SkyWarnTX Report Abuse The U.S. Exports 117 million gallons per day of Refined GASOLINE... TAR from CANADA's TAR SANDS will just be turned into what... ROOF SHINGLES ?? ... Today's HIGH GASOLINE PRICE is ARTIFICALLY controlled by BIG OIL COLLUSION and SPECULATORS who have no CAPACITY to receive delivery, should be illegal... oh wait... it is.., [Edited by: SkyWarnTX at 2/9/2012 8:36:12 PM EST]
DanMtz Champion Author Oakland Posts:1,532 Points:883,250 Joined:Oct 2009	Message Posted: Feb 9, 2012 7:58:58 PM Ignore DanMtz Report Abuse Get the Chinese on the phone.
Van_Halen Champion Author Atlanta Posts:1,671 Points:333,320 Joined:Apr 2011	Message Posted: Feb 9, 2012 9:19:04 AM Ignore Van_Halen Report Abuse . Which is exactly what I said weeks ago when an idiot reported that is "was because the Keystone Pipeline was cancelled".
GasPriceHelp4u All-Star Author Dayton Posts:864 Points:209,675 Joined:Jul 2008	Message Posted: Feb 9, 2012 6:31:08 AM Ignore GasPriceHelp4u Report Abuse I don't its helping or hurting the recovering economy!!!
FPLREP Champion Author Virginia Posts:6,382 Points:2,091,520 Joined:Oct 2005	Message Posted: Feb 9, 2012 6:27:24 AM Ignore FPLREP Report Abuse Seems to be in conflict with supply and demand principles.
runout9 Champion Author New Jersey Posts:3,240 Points:978,145 Joined:Dec 2008	Message Posted: Feb 9, 2012 1:08:55 AM Ignore runout9 Report Abuse Obama wants & needs higher crude & pump prices to justify his leftist expensive green pipe dream agenda. Solyndra & the Chevy Dolt come to mind.
amerk73 Champion Author Dallas Posts:5,234 Points:1,260,960 Joined:Oct 2008	Message Posted: Feb 8, 2012 10:52:45 PM Ignore amerk73 Report Abuse thats fair price
Martinman Champion Author Mississippi Posts:12,522 Points:1,741,020 Joined:Sep 2005	Message Posted: Feb 8, 2012 7:52:05 PM Ignore Martinman Report Abuse A 42-gallon barrel of crude yields on average 19.5 gallons of gasoline. So 19.5 gallons x $4/gallon = $78 a barrel + another ~9.2 gallons of distillate (diesel and home heating oil) So 9.2 gallons x $4/gallon = $37 a barrel and another 16 gallons of jet fuel, kerosine, and other petroleum products. That puts you at $115 per barrel plus the revenue from the residuals. [Edited by: Martinman at 2/8/2012 7:59:42 PM EST]
aquarinut Champion Author British Columbia Posts:1,217 Points:278,960 Joined:Jul 2011	Message Posted: Feb 8, 2012 7:27:01 PM Ignore aquarinut Report Abuse Maybe it is time to start building Canadian refineries after all. The refined products will probably sell for a lot more than $66 a barrel!!
Martinman Champion Author Mississippi Posts:12,522 Points:1,741,020 Joined:Sep 2005	Message Posted: Feb 8, 2012 4:56:38 PM Ignore Martinman Report Abuse Yeah, that's real intelligent. Let's let a Canadian corporation, take AWAY American jobs... BRILLIANT ! Currently, crude oil from the Bakken formation is being transported to market via rail, just like coal for power generation is transported out of this region. Transferring the movement of the Bakken crude oil from American-owned rail, to Canadian-owned pipeline, will take away jobs, tax revenue, and corporate profits. And please explain how Canadian crude oil, which origiates hundreds of miles north of the Canadian border is going to benefit BNSF? Look at this map here, of the BNSF railway network and please explain. I really want to hear this one... Again... BRILLIANT ! You people amaze me... [Edited by: Martinman at 2/8/2012 5:05:59 PM EST]
tattoo666TX Champion Author Texas Posts:1,906 Points:246,065 Joined:May 2011	Message Posted: Feb 8, 2012 4:30:37 PM Ignore tattoo666TX Report Abuse Has anyone else, or everyone else noticed how Warren Buffett, the third richest person in the world has been backing Obama lately? More specifically how he is backing Obama to stop the XL Pipeline? Anyone want to guess why? Maybe because the railroad that will haul all of the crude (which is not really safer then the pipeline would be)would be putting more money in Buffett's pocket! Yup, That is right. Get the president to stop the pipeline so you can make money shipping it by rail.
grandpadon28110 Champion Author Charlotte Posts:2,908 Points:785,135 Joined:Sep 2008	Message Posted: Feb 8, 2012 4:19:32 PM Ignore grandpadon28110 Report Abuse Obama doesn't want the XL Pipeline because we can use this low priced oil.
tnfran Champion Author Arizona Posts:2,571 Points:497,715 Joined:Dec 2010	Message Posted: Feb 8, 2012 4:14:38 PM Ignore tnfran Report Abuse So why then are the prices we pay for gas/diesel from Canada so high. Big Oil should be able to blend that into the pricing scale.
uglytom Champion Author Florida Posts:6,210 Points:1,293,790 Joined:Jul 2007	Message Posted: Feb 8, 2012 3:44:51 PM Ignore uglytom Report Abuse Super news!