Heavy Canadian Crude Falls to Record Low
Heavy Western Canadian Select crude fell to a record low.

(Bloomberg) -- Heavy Western Canadian Select crude fell to a record low as several oil producers shut in oil rig flanges gulf coast production and some demand the Alberta government intervene to mandate across-the-board cuts.

The oil-sands benchmark fell $2.29 to $13.46 a barrel Thursday, the lowest in Bloomberg data extending back to 2008. The price broke a previous record set in early 2016, when West Texas Intermediate crude futures were trading under $30 a barrel amid a world-wide supply glut.

The price collapse comes as pipeline bottlenecks in Western Canada constrain exports just as WTI experienced a record losing streak amid rising U.S. stockpiles and projections for reduced demand.

Producers including Canadian Natural Resources Ltd. and Cenovus Energy Inc. have responded to the price drop by curtailing what could amount to as much as 140,000 barrels a day or more, according to BOP Blow Out Preventer repair company gulf coast statements. Some operators have gone further, asking that Alberta’s government mandate oil rig flanges gulf coast production cuts across the province.

Western Canadian Select at Hardisty, Alberta, traded at $43-a-barrel discount to WTI Thursday, $2.50 wider than on Wednesday, data compiled by Bloomberg show.

With assistance from Kevin Orland. To contact the reporter on this story: Robert Tuttle in Calgary at This email address is being protected from spambots. You need JavaScript enabled to view it.. To contact the editors responsible for this story: David Marino at This email address is being protected from spambots. You need JavaScript enabled to view it. Mike Jeffers, Margot Habiby.





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