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US-Canada Spare Pipeline Capacity to Cope with Rail Action: Reuters

OIL

A looming labour dispute at Canada’s two main railroads is unlikely to significantly impact oil exports to the USA amid excess capacity on Trans Mountain and other pipelines, Reuters said.

  • US rail imports of Canadian crudes have also fallen sharply in recent years, averaging around 55k b/din May out of a total of 4.2m b/d of imports of Canadian crude.
  • Maintenance at US refineries will also free up extra pipeline space, Reuters said.
  • Discounts for WCS have narrowed and discounting has been limited. WCS for Sep settled at WTI minus $12.25/b Aug. 16, compared to an average of $18.65/b for 2023.

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