By Sheela Tobben on 10/7/2021
(Bloomberg) –Canadian oil shipments to the U.S. jumped to the best quantity because the begin of the yr thanks partly to the startup of a long-delayed Canadian pipeline.
Weekly oil deliveries from America’s northern neighbor reached 4.04 million barrels day, probably the most since January, in keeping with the Vitality Data Administration. It’s solely the third time the U.S. has imported greater than 4 million barrels a day of Canadian crude because the company started compiling weekly knowledge in 2010.
It’s possible these elevated flows would be the new norm primarily due to the expanded Line 3, stated Elisabeth Murphy, ESAI Vitality LLC upstream analyst for North America. In reality, weekly volumes ought to begin to common nearer to three.7-3.8 million barrels a day from right here, from present ranges of round 3.5 million, she added.
The extra barrels from Canada come as a reduction to U.S. refiners scuffling with much less provide from OPEC+, shrinking imports from Latin America, and extra just lately, the lack of about 30 million barrels of Gulf of Mexico manufacturing after Hurricane Ida.
Gulf Coast refineries have more and more been pulling from Canada to offset the crude manufacturing within the Gulf of Mexico that continues to be shut since Hurricane Ida swept by over a month in the past, stated Shirin Lakhani, director of world oil service at Rapidan Vitality Group.
Final week, Enbridge Inc. began its new Line 3 crude pipeline after years of delays. It will probably transport 760,000 barrels a day of heavy and lightweight oil, almost double the scale of the outdated line it changed.