Canadian Oil Exports by Rail Nearly Doubled

Article on TankTerminals.com, a tank storage industry website notes the increasing trend in crude oil shipments by rail and predicts the trend will continue with more than 12 million gallons expected to be carried by rail and nearly all of that oil headed for U.S. ports.

“The National Energy Board, the Canadian regulator, reported total crude oil exports by rail for June averaged 204,558 barrels per day, an 87 percent increase from last year. June was the last full month for which the NEB reported data on crude oil exports by rail.”

Kevin Birn, the director for regional energy projects at consultant group IHS Markit, told UPI the constraints on Canadian takeaway capacity has suppressed the price for the Canadian crude oil benchmark by as much as $30 per barrel relative to West Texas Intermediate, the U.S. benchmark.

“With western Canadian pipelines full, greater volumes crude by rail volumes will continue to grow into the fall,” he added. “We expect movement to average between 200,000 to 300,000 barrels per day for the year.”

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Canadian Oil Exports by Rail Nearly Doubled, TankTerminals.com