Home › Forums › Coking › News: DCU, Upgrader › 3.Upgrader (registered users only) › Canadian crude oil (conventional Light) sells for less WTI / hurts 4Q earnings › RE: Canadian crude oil (conventional Light) sells for less WTI / hurts 4Q earnings
Here is Update on Canadian (Light Conventional & possibly Sweet Synthetic Crude?) ~ due to mismatch in completion of new supply & lagging of P/L crude export projects, Crude price drop, Refining economics and resulting US supply glut. As article mentions it is going to hurt producers Dec 08 & 4Q08 earnings but is expected to work out.
This probably means some of CA Bitumen Upgraders will shift from making Synthetic Sweet crude & into Heavier Bitumen Blends as displaced CA Lt. Conventional crude seeks markets from its displacement with Canadian refineries like Edmonton Refinery (also stops making anode petcoke for Alcan smelters & becomes fuel coke producer).
This additional short term pressure is going offset all OPEC hype on production cuts (which were already cutback due demand anyway) and make all the crude loading into VLCC storage to wait for higher prices in 2009 ….. a much more risky play.
Don’t you just love it when Universe decides screw with speculators & Murphy helps out with some strange crude anomalies?