US, WASHINGTON (ORDO NEWS) — Canadian heavy oil has become so cheap that the cost of its delivery to refineries exceeds the cost of the oil itself, writes Bloomberg .
Western Canadian Select (WCS) oil prices in Alberta fell $ 2.84 on Thursday to a record low of $ 6.45 per barrel, Bloomberg data from 2008 show. Synthetic oil from bitumen also fell sharply: the price fell $ 9.94 to a record low of $ 10.85 per barrel.
Canadian heavy oil currently costs less than the price paid by the company with long-term contracts for its transportation through the US Enbridge pipeline system.
Oil prices collapsed after the failure of OPEC + negotiations to reduce production and the start of a price war for a share in the oil market.
Some of Canada’s largest oil sands companies, such as Suncor Energy Inc. and Athabasca Oil Corp., were forced to respond to falling prices by restricting or terminating operations.
With such a low level of oil prices, further shutdowns are expected, warns Tudor Pickering Holt & Co.
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