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Canadian Crude Prices Boosted as TMX Nears Completion

OIL

West Canadian Select discounts to WTI narrowed to their lowest since Aug. 2023 as the approaching completion of the TMX pipeline looks set to boost demand, according to Oilprice.com.

  • Supporting prices were comments by Trans Mountain executive Jason Balasch that the expanded pipeline will begin filling oil in February.
  • Once operational, the expanded pipeline, up to 890k b/d from 300k b/d, will open up additional Canadian crude barrels to markets accessible from Canada’s Pacific Coast.
  • Currently, the limitation on pipeline capacity has put a logistical bottleneck on demand, which keeps pressure on prices.

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