Canadian crude-by-rail exports bounce again in March as pipeline capability restricted

Canadian crude-by-rail exports bounce back in March as pipeline capacity limited

2021-05-26 05:17:23

The Canada Vitality Regulator says Canadian crude-by-rail exports bounced again in March as a consequence of higher oil manufacturing amid restricted export pipeline capability for heavy oil.

It says exports rose 57 per cent to succeed in 175,580 barrels per day after 111,900 barrels per day have been exported by rail in February.

Exports in each months are down from 195,500 bpd in January and 350,570 in March 2020.

Crude-by-rail numbers have been risky up to now few years. Shipments reached a file 412,000 bpd in February 2020, then fell to an eight-year low of 39,000 bpd final July.

Rail transportation of crude oil is taken into account to be dearer than delivery by pipeline so shippers have a tendency to make use of it solely when pipelines are full or if the vacation spot market affords a lot greater costs than will be achieved in Canada.

Story continues beneath commercial

READ MORE: U.S. analysts brace for extra oil by rail as debate continues over cross-border pipelines 

The CER says whole oil exports from Canada in March have been 3.66 million barrels per day, down from 3.72 million bpd in February and three.98 million bpd in March 2020.


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