Cheap Canadian oil displaces Iraqi imports on U.S. West Coast (2024)

California and Washington are set to import about 150,000 barrels a day of Canadian crude

Author of the article:

Cheap Canadian oil displaces Iraqi imports on U.S. West Coast (1)

Bloomberg News

Robert Tuttle

Published Jun 24, 2024Last updated 4hours ago1 minute read

Join the conversation
Cheap Canadian oil displaces Iraqi imports on U.S. West Coast (2)

U.S. West Coast refiners are replacing their heavy Iraqi oil imports with cheaper crude from Canada as the newly expanded Trans Mountain pipeline reshuffles trade flows across the Pacific.

Cheap Canadian oil displaces Iraqi imports on U.S. West Coast (3)

We apologize, but this video has failed to load.

Try refreshing your browser, or
tap here to see other videos from our team.

Cheap Canadian oil displaces Iraqi imports on U.S. West Coast Back to video

Cheap Canadian oil displaces Iraqi imports on U.S. West Coast (4)

We apologize, but this video has failed to load.

Try refreshing your browser, or
tap here to see other videos from our team.

California and Washington are set to import about 150,000 barrels a day of Canadian crude by tanker in June — a seven-fold increase from average volumes, according to preliminary Vortexa data. At the same time, imports of Iraq’s Basrah heavy crude are poised to plunge to just 3,587 barrels a day from 76,000 barrels in May.

Advertisem*nt 2

Story continues below

This advertisem*nt has not loaded yet, but your article continues below.

Cheap Canadian oil displaces Iraqi imports on U.S. West Coast (5)

THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.

SUBSCRIBE TO UNLOCK MORE ARTICLES

Subscribe now to read the latest news in your city and across Canada.

  • Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, Victoria Wells and others.
  • Daily content from Financial Times, the world's leading global business publication.
  • Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
  • National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
  • Daily puzzles, including the New York Times Crossword.

REGISTER / SIGN IN TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account.
  • Share your thoughts and join the conversation in the comments.
  • Enjoy additional articles per month.
  • Get email updates from your favourite authors.

Sign In or Create an Account

or

View more offers

Article content

The Trans Mountain expansion, which began operating in May, can bring 590,000 barrels a day of crude from Canada’s oilsands to Vancouver for export. That’s potentially a boon for refiners on the U.S. West Coast, who would otherwise pay several dollars per barrel more for Iraqi crude. The trade flow also signals that the United States will, for now, remain a dominant buyer of Canadian oil, even as the pipeline gives producers access to coveted Asia markets.

Cheap Canadian oil displaces Iraqi imports on U.S. West Coast (6)

While Trans Mountain still isn’t running at full capacity, the company expects 22 tankers to ship crude from Vancouver this month. More than 81,000 barrels a day are heading to China. Another 50,000 barrels a day is going to India, the first such movement off Canada’s Pacific Coast.

Recommended from Editorial

  1. Trans Mountain looking to sell 30% stake
  2. Ottawa changes rules to make it easier to sell Trans Mountain pipeline

As Canadian imports to the U.S. West Coast rise, shipments of medium, low-sulfur Brazilian oil Tupi are falling along with Basrah heavy. The benchmark heavy Western Canadian Select in Alberta trades at a discount to U.S. benchmark West Texas Intermediate of about US$13 a barrel in Alberta, or about US$67 a barrel, according to General Index pricing on Bloomberg. Basrah heavy trades at US$5.55 discount to dated Brent, or more than US$80 a barrel.

Bloomberg.com

Article content

Comments

You must be logged in to join the discussion or read more comments.

Create an AccountSign in

Join the Conversation

Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.

Trending

  1. Cheap Canadian oil displaces Iraqi imports on U.S. West Coast
  2. Macklem says Canada must invest in its labour force, address productivity challenges
  3. Next Bank of Canada interest rate cut could hinge on inflation data out this week
  4. How Canada's greenwashing rules affect everyone — not just the oilsands
  5. Posthaste: The mystery of gold prices just got more mysterious

Read Next

This Week in Flyers

Cheap Canadian oil displaces Iraqi imports on U.S. West Coast (2024)
Top Articles
Latest Posts
Article information

Author: Golda Nolan II

Last Updated:

Views: 5959

Rating: 4.8 / 5 (78 voted)

Reviews: 93% of readers found this page helpful

Author information

Name: Golda Nolan II

Birthday: 1998-05-14

Address: Suite 369 9754 Roberts Pines, West Benitaburgh, NM 69180-7958

Phone: +522993866487

Job: Sales Executive

Hobby: Worldbuilding, Shopping, Quilting, Cooking, Homebrewing, Leather crafting, Pet

Introduction: My name is Golda Nolan II, I am a thoughtful, clever, cute, jolly, brave, powerful, splendid person who loves writing and wants to share my knowledge and understanding with you.