Price discounts are costing the Canadian economy as much as $80 million per day.
CALGARY — The National Energy Board says crude-by-rail exports from Canada rose to a record 269,829 barrels per day in September.
That’s up more than 17% from 229,544 in August and just over double the 134,132 barrels per day recorded in September 2017.
Total crude exports reached 3.47 million bpd in September, up from 3.31 million a year earlier.
Pipeline export constraints are being blamed for a glut of oil in Western Canada that caused the price discount to peak at more than US$50 per barrel in October for Western Canadian Select oil sands blend versus New York benchmark West Texas Intermediate.
The province has called on Ottawa to help increase crude-by-rail shipments, estimating the discounts are costing the Canadian economy as much as $80 million per day.
Meanwhile, oil sands producers such as Cenovus Energy Inc. and Imperial Oil Ltd. are ramping up crude-by-rail volumes to get barrels to markets where they will receive better prices.
Cenovus has called on the province to impose production cuts to reduce the oil oversupply in Alberta but the suggestion has been panned by rivals who are insulated from discounts because they have firm pipeline contracts or use their oil in their own refineries.
News from © Canadian Press Enterprises Inc. 2016