Tags: oil | export | crude | Canada

US Oil Companies Shipping Copious Crude to Canada

By    |   Thursday, 12 December 2013 07:33 AM

Some of the huge U.S. oil production windfall is ending up in Canada.

The domestic oil glut along with restrictions on coastal tanker movements to U.S. refineries have spurred traders to buy inexpensive Gulf coast crude and sell it in eastern Canada at loftier global prices, the Financial Times reports.

The U.S. government issued 103 licenses to send crude oil abroad in the year ended Sept. 30, up by from 66 in fiscal 2012 and the highest since at least 2006, according to the Times.

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All but 12 of the licenses were for shipments to Canada, where companies can buy U.S. crude as long as they refine it there.

It's all a bit ironic, given that Canada is the top foreign supplier of oil to the United States.
Exports to Canada hit 99,000 barrels per day in September, according to the latest official data.

And traders estimate that since then the total has reached about 200,000 barrels a day, the highest level in more than 10 years, the Times reports.

Meanwhile, Oppenheimer oil analyst Fadel Gheit sees oil prices headed for a meltdown. He says 20 to 30 percent of oil's current price reflects a "supply risk premium" that will vanish when Iran's nuclear issue is resolved, Business Insider reports.

"We believe the current oil price bubble will burst eventually and the question is not if, but when and to what level," Gheit writes in a commentary obtained by the news service.

January crude futures were trading at $97.95 on the Nymex Wednesday Morning.

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Some of the huge U.S. oil production windfall is ending up in Canada.
oil,export,crude,Canada
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2013-33-12
Thursday, 12 December 2013 07:33 AM
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