Opportunity Crudes

With US President-elect Joe Biden set to be inaugurated on Jan. 20 and the expectation that a Biden administration will ease sanctions on Iran and Venezuela, the South American nation has resumed direct crude exports to China.

Wall Street firms, including BMO Capital Markets, BofA Securities, Goldman Sachs Group, and Morgan Stanley, are very bullish on the ability of Canadian oilsands firms to generate healthy cash flow next year.

Prices for WCS on the US Gulf Coast (USGC) are on the rise due to higher demand from outside North America, particularly in Asia.

On Nov. 23 the Canadian energy firm announced it would become the operator of its Syncrude oilsands j.v. by the end of next year.

Despite the reduction in E&P spending across the globe, including in Mexico, the president of Mexico's private oil association Amexhi and Mexico country manager for Wintershall, said private firms operating in the country are still maintaining its 2024 oil production target of 280K b/d.

On Nov. 13 Venezuelan vice president Delcy Rodriguez and PDVSA CEO Asdrubal Chavez arrived in Moscow on an official visit to discuss possible new oil j.v. with Russian energy officials and investors and to "deepen strategic alliances" between the two countries.

As a result of bearish market conditions brought on by the coronavirus pandemic and new projects easing pipeline congestion out of the province, Premier Jason Kenny announced that Alberta will suspend production curtailments, effective on Dec.

Exports of Venezuelan crude are declining ahead of a deadline set by the US Treasury Dept.

WCS prices are expected to find support next year amid higher demand from US refineries due to an expected reduction in heavy Mexican Maya crude exports to the US Gulf Coast (USGC) in 2021, according to BMO Capital Markets.

Output from the oilsands patch in the Canadian province of Alberta is now 16% (640K b/d) below pre-COVID-19 levels, an improvement from the 22% (880K b/d) reduction at the peak of production cuts undertaken by oilsands producers due to the pandemic.