- The oil sands-related cutbacks in Alberta announced (I, II) by Canadian Oil Sands (OTCQX:COSWF) and Cnooc's (NYSE:CEO) Nexen Energy could affect oil exports to the U.S. in the long run and already have raised prices in the short term, WSJ reports.
- Neither company offered specifics on production or how long the shutdowns would last, but prices for Canadian synthetic crude oil rallied in trading Monday amid concerns about a drop in shipments from Syncrude and Nexen.
- Light synthetic crude from the oil sands for September delivery jumped to a one-month high of $1/bbl below the West Texas benchmark, rallying from $4.50/bbl below WTI on Friday.
- The impact on Canada’s crude production and pricing will depend on the duration of the outages; “It all comes down to how long these facilities are down and out, “ says Kevin Birn, a director in charge of oil sands analysis at IHS Energy.