The Oil Industry Is About To Become Worthless

mentalfloss

Prickly Curmudgeon Smiter
Jun 28, 2010
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Lower supply makes things more expensive.

That's the free market for ya bruh
 

Nick Danger

Council Member
Jul 21, 2013
1,214
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Penticton, BC
Supply is there bruh, every storage tank and idle pipeline is full, someone is manipulating the market again
It could be that in part, but overall demand is down with people out of work, businesses seeing less traffic and overall travel down. Add to that that Canada’s oil exports are largely controlled by American interests and it doesn’t look rosy.

In the years since the 2014 price crash Canadian producers have tried to make up for the lower price with increased output and efficiencies. The problem today is getting that oil to market.
 

Twin_Moose

Hall of Fame Member
Apr 17, 2017
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Twin Moose Creek
It could be that in part, but overall demand is down with people out of work, businesses seeing less traffic and overall travel down. Add to that that Canada’s oil exports are largely controlled by American interests and it doesn’t look rosy.

In the years since the 2014 price crash Canadian producers have tried to make up for the lower price with increased output and efficiencies. The problem today is getting that oil to market.
Why did Brent hit a 3 year high yesterday? You are aware we sell on the Brent right?
 
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Twin_Moose

Hall of Fame Member
Apr 17, 2017
16,161
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Twin Moose Creek
I stand corrected

Crude oil facts (nrcan.gc.ca)

Prices​

There are many different types of crude oil around the world, each with their own price:

  • West Texas Intermediate (WTI): Reference price for light crude oil delivered at Cushing, Oklahoma (a major pipeline hub) and used as the benchmark price for North American crudes.
  • Brent: Reference price for light crude oil delivered at the Sullom Voe terminal in the U.K. and used as a benchmark price for North Sea crudes, and for light crude traded around the world in coastal markets.
  • Canadian Light Sweet: Reference price for light crude oil (similar quality to WTI) delivered at Edmonton.
  • Western Canada Select (WCS): Reference price for heavy crude oil (e.g. blended bitumen) delivered at Hardisty, Alta. WCS is representative of the price of oil from the oil sands. It takes more energy to produce refined products (e.g. gasoline) from heavy crudes, therefore WCS trades at a discount to lighter crudes.
  • Maya: Reference price for heavy oil produced in Mexico (similar quality to WCS).
Explore crude oil pricing in Canada.

https://www.nrcan.gc.ca/sites/www.n...nt-versus-WTI-monthly-average-prices_2020.png
 
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