Learning From OPEC: Alberta's Oil Supply Cuts Find a Sweet Spot - Bloomberg:
Alberta may have finally found the right level for its oil curtailment program that has sent local oil prices on a roller coaster for the last few months.
Last week, Jason Kenney’s new provincial government announced it would roll the 3.71 million barrel a day June production limit into July. That production level seems to finally be doing what the curtailment program was designed to achieve: alleviate a glut caused by too much oil encountering too few pipelines. It also has strengthened prices to a point that makes crude by rail exports worth the cost.
“Certainly, it appears, at this point, you do have a widening differential scenario that’s more supportive of rail,” Kevin Birn, IHS Markit’s director of North American crude oil markets, said by phone.
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