U.S. Refiners Face New Crude Squeeze as Canada Cuts Oil Sands Output
SPR Sinks Toward Operational Minimum as U.S.
Crude Inventories Build What I Cover Irina Slav has been writing about global energy markets since 2007, covering the oil and gas industry, energy security, commodities, and the… U.S.
refineries have been running at full speed for months to make up for lost fuel supply from the Middle East.
Fuel exports from the United States have been breaking records.
This may be about to change, and not because of the war.
It is oil sands maintenance season in Canada.
In September, Canadian crude oil production may drop by 300,000 barrels daily due to maintenance activities in the oil sands, Rystad Energy said this week, asquotedby Bloomberg.
Usually, whenever such a seasonal disruption occurs, it gets offset with crude from storage.
Unfortunately, crude in storage is also lower than usual—the lowest in 12 months, per the report.
Normally, Canadian oil producers send 4 million barrels daily of heavy crude to U.S.
Next month, there will be less, which will be felt because demand for fuels remains strong despite some demand destruction by higher prices.
According to the Bloomberg report, all major oil sands operators will be cutting production for maintenance, and pipeline operators have stopped rationing space on their pipes in evidence they expect lower demand in September.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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