Opportunity Crudes

The Canadian energy firm has increased its stake in the Fort Hills oilsands project to 75.4% by acquiring Teck Resources Fort Hills stake for C$1B ($737MM), a move that industry observers say is driven by Suncor Energy Inc.'s desire to extend the life of its biggest mine.

In Oct., the heavy-sour Canadian grade's discount to the light-sweet US grade reached a level that was 250% times higher than normal and was at the widest in four years.

According to a Bloomberg report, Canadian crude price differentials have hit a four-year low against US WTI due to a combination of planned maintenance shutdowns ..

Saudi Arabia set the Official Selling Price (OSP) for its heavy grade for buyers in the Far East at $2.20/bbl above the Middle-Eastern benchmark for Oct.—$3.80/bbl lower than the $6.00/bbl premium that had been in place for Sept.

The US's decision to release 180MM bbl from its Strategic Petroleum Reserve (SPR) has reduced US refiners' demand for WCS because the SPR barrels mainly comprise medium-sour grades, leading to increased competition for Canada's heavy-sour WCS.

Speaking during the week ending Sept. 16, Venezuelan President Nicolas Maduro stated that his country is ready to boost oil exports should US sanctions be removed.

The heavy-sour grade, which is produced by Italian oil major Eni in the Amoca, Mizton and Tecoalli offshore fields, has seen increased interest from US refiners, such as Marathon Petroleum Corp. and PBF Energy Inc., as reported in the Aug.-29 Digest.

The prospects for sending out crude from the two regions are poor at the moment, with weaker demand ...

On Aug. 19, US District Court Judge Carl Nichols upheld a 2019 award of $8.75B from the World Bank's International Center for Settlement of Investment Disputes to ConocoPhillips (COP) over the 2007 expropriation of its Venezuelan oil assets.

US refiners, including Marathon Petroleum Corp. and PBF Energy Inc., have been boosting imports of a new Mexican crude grade, Mizton, produced by Eni.