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Bloomberg
Canadian crude surged by the most ever after Enbridge Inc. said it won’t implement a new procedure to stop shippers from claiming more space than they can use on a key pipeline linking Alberta’s oil sands with US refineries. Western Canadian Select jumped as much as $12.20 a barrel to $13.80 below the US benchmark, the narrowest spread since May 16. Canadian crudes have weakened to historically low levels in recent weeks as growing production overwhelms available pipeline capacity to transport Alberta’s supplies south of the border.
Canada’s biggest crude-export pipeline operator told shippers that it won’t proceed with announced rules setting an allowance for the amount of crude companies could nominate for transport on its mainline, Enbridge said. “Producers have a strong say in how the market is going to be participated in,†Tim Pickering, chief investment officer at Auspice Capital Advisors Ltd., said in a phone interview from Calgary.