Thursday , January 21 2021

Canadian oil prices suddenly tear

Weeks after pushing levels for all time, Canada's benchmark for heavy oil is spinning, rising again on Friday, and cutting its crude oil rebate in the United States.

Western Canadian Select traded at $ 38.12 a barrel on Friday afternoon, up 15.6 percent from its fourth closing, marking the latest round of profits after Alberta's Prime Minister Rachel Notley announced a reduction in production that would enter in force in January, Facing pipeline and rising reserves, oil prices in Alberta have fallen in recent months, with New Zealand in November achieving a record low of less than $ 14.

Rally this week led to a significant contraction in the price difference between the WCS and the West Texas Intermediate Unit, the US benchmark. WCS is already selling for a $ 15 barrel discount on WTI; in October, the price differential has reached $ 50, the biggest discount in Bloomberg data since 2008. A key indicator for oil, the difference is now slightly better than the historical average of $ 17.37.

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Rally on Friday also places WCS next to some long-distance ratings. Joan Pinto, an associate and energy specialist at CIBC Capital Markets, has forecast this week to round out WCS at an average price of $ 40.50 a barrel in 2019 and $ 41.75 next year.

Oil prices rose on Friday after OPEC Plus announced a larger-than-expected reduction in crude oil production. ("OPEC Plus" refers to the Organization of Petroleum Exporting Countries, along with other producers who have agreed to a previous supply limit, such as Russia.) WTI jumped 4.5 percent to $ 53.83 a barrel, a percent to $ 63.06, from the beginning of the afternoon afternoon.

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