Lowest oil price in history. .?????.. and ...

[GDR]

On the last farm fill no prices on the delivery slip !

I have never had a price on the delivery slip from ufa.

[mbratrud]

They say the price of gas and diesel is going to go up???

Carbon taxes....the change from winter to summer fuel....and of course refineries have to slow production before every tank is full to keep there colluded supply making money....


Carbon tax is Justin's fault.

Change from winter to summer needing more money is a fallacy ...oil was purchased at a higher value going into the winter season....by a factor of 10x the price...


Reducing production to meet demand is code for creating a shortage...


And of course there is the " we bought oil at a higher price and it hasn't worked through the system yet"...

And why is it that low priced oil goes through the system in a day?

Every end user of oil like refineries should have their oil bought at 5 bucks a barrel for as long out as they can ....

But gas increases are coming. ...when oil hits 50 again we will be paying 1.50 a liter for gas....

And there isn't one politician that will investigate the bullshit. ..

First of all I agree with much of what you are saying. Let me be the devils advocate a little though. Saying Refineries should buy out a $5/b is like saying if we suddenly overnight had Canola trading for $2 per bushel crushers should buy a years worth. How many would sell to them at that price? only the most desperate would sell. Many of the oil companies would have had as much as 60% production hedged several months out.

Fuel prices have been supported by the stockpiling of fuel that has been happening, I know local fuel truck driver that's concerned he wont have much work this summer because everyone stockpiling fuel on farms and construction co's. If the Saudis, Russia and Americans come to an agreement oil will probably recover but some analyst have said they can see the Saudis cranking open the taps this until December. If that happens we will see more companies forced to sell at lower prices and could see another leg lower.

Interesting unprecedented times... The integrated companies are going to do what they can to keep Gas in Diesel prices up to support their production side that is hemorrhaging cash. But how long can they do that...?

In the long run we need our Oil Industry to survive.

As for Trudeau and the carbon tax. I fear that's going to be a drop in the bucket in comparison to the taxes coming our way to pay for this disaster unfolding. Farming in comparison to most other sectors is still somewhat viable and I'm sure going to be a sector he will look to Siphon cash from. I'd bet Mornau already drawing up the plans for inheritance and capital gains taxes that will make the carbon tax look desirable.

[wd9]

Good question , but just a wag .. red tape , over regulation has made it near impossible to even consider projects like that in Canada ?

You would think shipping black diluted sludge to Texas, and shipping fuel back has nothing to do with efficiency, but who actually "owns" Alberta.

[wmoebis]

Why isn't there more refinery capacity in western Canada?

More refining would = more competition would = lower retail price and higher crude demand and price. Same as grain and why we don't become finished product suppliers instead of raw product suppliers. Middle men can't make enough money.

[6V53]

Why isn't there more refinery capacity in western Canada?

That would create a glut and cause prices to fall. Not good for profits.

[helmsdale]

Flame away...

As has been said, most production today is on hedged values from months ago.

Remember that WTI, or WCS posted price today for the front month contract is only for the "marginal barrel".

Remember fuel is a global commodity. Numbers are not necessarily in our favour on Distillate, quite like they are on Gasoline. Vast majority of freight is still rolling up and down the road, trains are still moving product, and farms are still putting a crop in so diesel is still very much in demand compared to gasoline which has seen an unprecedented nosedive in consumption! All refineries make multiple different products with a barrel of oil so ramping up of production of distillates would increase the glut of other products that they are unable to move at the moment. The numbers are very much showing that this is the case... API showed a build of 6.058M barrels of gasoline in the US last week, DOE showed a build of 7.524M barrels. Distillates on the other hand seen a draw of 4.458M barrels according to API, and 2.194M barrels according to DOE. Those numbers put massive pressure to the downside on gasoline, and pressure on distillates to hold if not possibly increase.

Rack pricing on ULS diesel sitting in the mid 50's, gasoline in the mid to high 20's in most regions of western canada.

[mustardman]

You would think shipping black diluted sludge to Texas, and shipping fuel back has nothing to do with efficiency, but who actually "owns" Alberta.

The Reason the major Oil Sands Players Want pipelines is to move product to THEIR Refineries.
Koch brothers own lot of oilsand property and wants oil to go South to their refineries as do ALL the major companies because they ARE American Companies.
No other county in the world would let Foreign Governments TAKE Over their resources,the way Canada has Allowed

[jazz]

You guys understand refinery economics about as well as a rock.

Refineries need to be built at transportation hubs with clear access to other distribution nodes and networks and ocean ports. You see anything like that in northern ab?

They also require huge investments in capital like 50B and Canada has little access to capital, its residents are house poor and cannot invest in the TSX like the americans do in their economy. So companies have to go to the US system for capital and as soon as they do that, they say f it and just build it in texas.

Now there is a case to do more upgrading here if that's what you mean, but any of those projects needed govt backing to get going. Does Trudeau sound like he wants to do that?

[bucket]

FCL was funded under the Devine government to build the upgrade which was then given away by the NDP....they supply local coops their fuel....

They buy feedstock at a significant discount to WTI or Brent crude oil....as seen by their billion dollar profits the last couple of years....

They are making money and if you have never heard the excuses as to why they can't be a price setter as opposed to keeping up with the bigger players ...you haven't seen the comedy of logic they use....

[Taiga]

My one coop card lock that I use moves a million litres of diesel a week. That’s just one station. There is no huge inventory from September sitting in storage.

[bucket]

My one coop card lock that I use moves a million litres of diesel of week. That’s just one station. There is no huge inventory from September sitting in storage.

So why is FCL thinking of reducing production?

Other than to increase the price and keep in line with their collusionary friends...

[Rareearth]

The ethanol plants should sell retail and bulk pumps to sell high % ethanol gas/fuel blends down to 5%blend

Many vehicles can burn especially in the summer high % bio fuels.

The ethanol plants in USA are in trouble now trying to sell whole sale, maybe solution is retail?