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

[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?

[jazz]

Farmers can take up some of that excess by refilling tanks right after seeding. I dont usually buy again until august and dont keep a lot around over winter.

[helmsdale]

If you're waiting for a signal to fill your fuel tanks, this just might be the last opportunity for awhile...

[Oliver88]

Farmers can take up some of that excess by refilling tanks right after seeding. I dont usually buy again until august and dont keep a lot around over winter.

This could be a good strategy.

Last week looks like it would of been an ideal time to fill for seeding.

[TASFarms]

How many people are panic buying tanks and filling the with diesel. $3200 for a 2015 1000 gallon tank with no pump sold on Richie brothers. 10 bids were past what the price of a new tank is

[farming101]

How many people are panic buying tanks and filling the with diesel. $3200 for a 2015 1000 gallon tank with no pump sold on Richie brothers. 10 bids were past what the price of a new tank is

LOL! Never checked but the guy on kijiji likely sold his old 500 on a stand for $500. No pump required!

[Rareearth]

Maybe this is just a dead cat bounce?

We will find out,
-carbon tax April 1
-plus lower btu content of current diesel in the system(pipelines)
-it still might pay to wait?