Canadian Producers Sheltered from Oil’s Plunge
“Canadian producers sheltered from oil’s plunge“
We came across this interesting statement in an article in The Globe and Mail, written by Shawn McCarthy and Jeff Lewis.
The article states
“Canadian crude producers are being cushioned from falling global prices by a drop in the loonie and narrower discounts for heavy oil shipped to key U.S. markets.
Brent crude, the global benchmark, has fallen about 15 per cent over the past 30 days, and U.S. West Texas intermediate has also tumbled sharply. But in Canada, the average price in Canadian dollars received by producers was actually slightly higher in the past month than over the previous 4 1/2 years, Toronto-Dominion Bank economist Leslie Preston said in a report Monday.
The reason is tied to favourable moves in the currency market, along with a reduced discount for Canadian heavy oil against WTI as more Alberta oil finds its way to U.S. refineries in need of heavy crude.”
Click here to read the article in it’s entirety.