This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

West Texas Intermediate crude for September delivery lost $2.22 to $74.43 on the New York Merc, while Brent for October lost $1.91 to $77.77 (all figures in this para U.S.). Western Canadian Select traded at a discount of $11.30 to WTI, up from a discount of $12.10. Natural gas added 12 cents to $2.25. The TSX energy index lost 1.57 points to close at 290.81.

Oil prices headed downward on easing geopolitical tensions in the Middle East, as U.S. Secretary of State Antony Blinken headed to Israel to try to seal a ceasefire deal for Gaza. Here in Canada, shippers of oil and other commodities continue to have their eye on labour tensions at Canada's two main railways, Canadian National Railway and Canadian Pacific Kansas City. Simultaneous strikes could start on Thursday and affect rail-carried U.S. shipments of crude, grain, fertilizer and other exports, potentially amounting to billions of dollars.

Thankfully, oil producers should be among the least affected by potential strikes, soothed energy analysts. They credited the recent start-up of the Trans Mountain pipeline expansion with adding spare export capacity. Long-term energy investors will recall that crude by rail (CBR) was previously much in vogue in late 2018 and 2019, when pipeline capacity was painfully scarce, Canadian oil prices were at record lows, and CBR was one of the only relief valves. Companies regularly hyped their CBR access and the saving grace it offered from dismal prices. Memorably, when the Alberta government tried to combat the glut in 2019 by enforcing temporary oil production curtailments, it offered exemptions to companies that could move product by rail, making CBR even more important. The result was that after averaging roughly 150,000 barrels a day from 2012 to 2018, CBR exports roughly doubled in 2019 and got as high as 412,000 barrels a day in February, 2020.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS