Pipeline constraints likely affecting Canadian crude oil prices, Cushing inventories (1/18/2018)

Pipeline constraints have probably resulted in Western Canada Select (WCS) crude oil prices trading at their lowest levels compared with West Texas Intermediate (WTI) prices in nearly three and a half years. The constraints have likely contributed to the increase in crude oil shipments by rail, a more expensive form of transportation that is ultimately reflected in the WCS–WTI price spread. Reduced pipeline flows from Canada could also be a factor in the recent reduction in crude oil stocks in Cushing, Oklahoma, which declined by 22 million barrels (34%) since the beginning of November and were 17% below their five-year average as of January 12, 2018. ... More »