With 84 percent of Canada's crude oil production bound for the US,it comes as no surprise that Canadian oil prices have also taken a heavy hit during the pandemic. The benchmark Western Canadian Select(WCS),which is traded at a discount based to the WTI average,also went negative at-$3.8 on 21 April. Heavily dependent on US offtake and with limited storage capacity,Canada was one of the first producing countries to shut down production. Numerous oil sands producers already curtailed their production output,cutting back on roughly 300,000 barrels of production per day. Rystad Energy estimated that"shuttered oil sands and heavy oil curtailments in Western Canada could exceed 1.1 million bpd in the second quarter of 2020,with additional near-term downside risk."
展开▼
