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Free AccessFirst Arrival of Canada’s Kearl Lake Crude in China Since 2018: Platts
Arbitrage flows of Canadian heavy crude to China continue with the Kearl Lake Blend making its return for the first time since 2018, Platts said.
- This is also the first time that the grade was transported via the Trans Mountain Pipeline.
- The Aframax cargo was bought at around a $5-$6/b discount to Jan ICE Brent by Rongsheng Petrochemical.
- Kearl Lake is a similar grade to Venezuelan heavy crudes, Iraqi Basrah heavy, and Western Canadian Select. Its production was round 255k b/d in Q2.
- However, Kearl Lake cannot produce asphalt, unlike Venezuelan crudes.
- Venezuelan crude tends to go to independent refineries in Shandong, with November delivery at a discount of around $12-$13/b vs ICE Brent.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.