Opportunity Crudes

According to North American pipeline company Enbridge, liquid volumes sent through its Mainline system, which transports crude from Alberta, Canada through the US Midwest and ultimately to the US Gulf Coast, were 14% lower on the quarter at 2.44MM b/d in 2Q.

Some shut-in oilsands output is beginning to come back online amid rising oil demand and prices around the world.

With demand recovering from the depths hit in the throes of the COVID-19 crisis, producing nations are expecting to reap better prices for their crudes, especially medium- and heavy-sour crudes that have seen supplies tighten due to the OPEC+ cuts, the collapse of Venezuela's oil industry, and the US sanctions on Iran.

At the start of this month, crude production from the South American nation fell to around 300K b/d, with no oil rigs operating in the country, according to a series of internal operation reports from PDVSA.

Canadian pipeline operator Enbridge was ordered to shut down Line 5, which travels from Western Canada to Eastern Canada and various hubs in the US and has a segment traversing the Straits of Mackinac.

In the week ending June 19, after a shifted screw was discovered, Canadian pipeline operator Enbridge shut down the line, which carries both crude and NGL from Western Canada to the Eastern Canada and various hubs in the US.

A fresh round of US sanctions on shipping companies and vessels involved in moving Venezuelan oil and has further tramped down oil output and exports from the South American nation.

From Jan. to May, heavy crude imports to the US Gulf Coast (USGC) from Brazil, Colombia, Ecuador, Guyana, and Mexico totaled 148.0MM bbl

On June 1 2020, it was announced that construction of a 7-km (0.62-mile) section in Kamloops, British Columbia has begun.

Crude production from the South American nation is on the decline as stocks in the country are building due to US sanctions limiting oil exports.