Gulf Coast Paying Premium Prices for Canadian Oil – But only 450,000 bpd make it there
Source: Financial Post
“CALGARY — While most Canadian oil is being sold at a huge discount to U.S. benchmarks, barrels that can find their way to the prized Gulf Coast market are securing international prices — and even selling at a premium on some days.
A barrel of Western Canada Select at the oil price hub of Hardisty, Alta., traded for US$19.49 on Wednesday for December delivery. But the same barrel of heavy Canadian oil is fetching US$64.74 in Houston, near the West Texas Intermediate benchmark price of US$66.44, AltaCorp Capital analyst Nicholas Lupick said.
“We’re not even talking about a different barrel,” Lupick said, explaining that the WCS Canadian blend is trading at two different prices depending on whether it’s sold in Alberta or Texas.”