Positive 2018 forecast for Canadian heavy oil

By The Canadian Press
January 5, 2018 - 6:48am

CALGARY - A new forecast from Deloitte says demand for Canadian heavy oil will likely rise this year as shrinking volumes from Mexico and Venezuela open new opportunities to sell to U.S. refineries.

The accounting and consulting firm says the demand surge will work to overcome recently steeper price discounts received by Canadian producers due to pipeline outages that have stretched tight export transportation capacity.

The benchmark West Texas Intermediate oil price is forecast to average US$55 per barrel in 2018, up from US$50.84 in 2017, supported by an anticipated renewal of production limits by the Organization of Petroleum Exporting Countries.

It calculates that Western Canada Select, a blend of northern Alberta bitumen and lighter oil, will average C$46.40 per barrel this year.

Deloitte says the United States is increasing its light oil production, but it is also boosting oil exports to markets such as Asia.

It says Canada's total bitumen production may for the first time exceed three million barrels per day this year as new projects like Suncor's Fort Hills oilsands mine and smaller expansions at steam-driven oilsands operations come on line.

(The Canadian Press)  

Council to vote on new microbrewery

Join the Discussion

We are happy to provide a forum for commenting and discussion. Please respect and abide by the house rules: Keep it clean, keep it civil, keep it truthful, stay on topic, be responsible, share your knowledge, and please suggest removal of comments that violate these standards. See full commenting rules.