28 March 2013 16:12 [Source: ICIS news]
TORONTO (ICIS)--Canadian commodity prices fell slightly in February, mainly because of a holiday season in China, as well as market risk aversion in the wake of ?xml:namespace>
While commodity prices generally moved higher in the opening weeks of February, they eased back after
As for Canadian oil prices, Mohr said that while international oil prices strengthened in February, the discounts on western Canadian heavy oil to West Texas Intermediate (WTI) widened to “an enormous $36.94/bbl.”
The discounts are the result of inadequate pipeline export capacity at a time of record Canadian oil production and an over-reliance on one key export market - US Midwest refineries, Mohr said.
In the short-term, the discounts should shrink somewhat in March and April as US Midwest refineries return from seasonal maintenance, Mohr said. At the same time, maintenance work at Alberta oil sands operations would take off pressure from the export pipelines, she said.
The discounts, along with the rising US domestic oil production from the North Dakota Bakken and liquids-rich shales in Texas, again underline the need for Canada to diversify its oil exports to China and the Pacific Rim, Mohr added.
($1 = €0.78)
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