Canadian oil exports to U.S. dip in November

DOWN 2.4%

NIA WILLIAMS CALGARY • Canadian exports of crude oil fell 2.4 per cent month-on-month in November to 3.28 million barrels per day, Statistics Canada said on Friday, after a decline in shipments to the United States.

The 80,000 bpd drop in exports to Canada’s biggest customer came in the same month TransCanada Corp.’s Keystone pipeline, which carries crude from Alberta’s oilsands to U.S. refineries, was shut down following a leak in rural South Dakota.

Keystone restarted in late November but the 590,000 bpd pipeline is still running with a 20-per-cent cut in pressure on the orders of U.S. regulators.

Canada exported 3.26 million bpd to the U.S. in November, down from 3.34 million bpd in October. It also shipped 22,500 bpd to the United Kingdom, the data showed.

The country’s crude oil imports from the U.S. rose 127,000 bpd to 413,000 bpd, while total imports climbed 51,000 bpd to 635,000 bpd.

Canada also imported crude from Saudi Arabia, Nigeria and Norway in November.

Refineries in eastern Canada often import crude from overseas because it is easier to ship barrels by tanker to the Atlantic coast than move them on congested export pipelines and railways from Western Canadian oilfields.

Meanwhile, oil prices fell on Friday, dropping from highs last seen in 2015, as soaring U.S. production undermined a 10-per-cent rally from December lows that was driven by tightening supply and political tensions in OPEC member Iran.

Rising U.S. production and weaker refined products demand weighed on the market, traders said.

“The holiday demand surge that we get is in the rear-view mirror,” said John Kilduff at Again Capital. “That, coupled with the rebound in U.S. production is helping to undercut some of the recent price strength.” While demand is up from a year earlier, robust stockpiles and a cold snap in the U.S. could put a damper on demand.

Traders said political tensions in Iran, the thirdlargest producer in the Organization of the Petroleum Exporting Countries (OPEC), had pushed prices higher.

“The protests in Iran add more fuel to the already bullish oil market mood,” said Norbert Ruecker, head of commodity research at Swiss bank Julius Baer. On Friday there was no new major outbreak of violence in the country, relieving some of the tension from the market.

West Texas Intermediate (WTI) crude futures for February delivery fell 59 cents to US$61.42 a barrel by 12:05 p.m. EST, a one-per- cent loss. WTI hit US$62.21 the previous day, which was its strongest since May 2015.

Brent crude futures for March delivery fell 41 cents to US$67.66 a barrel, a 0.6-percent loss. The previous day it touched US$68.27, also the highest since May 2015.