RE:RE:us gov. plan to buy oil to replenish the SPR at $79.00 ....Last week Canada shipped 3.7M bbl/day into the U.S.
Next highest importer was Mexico at 609k bbl/day.
Without that product coming in from Canada everyday what would price of gas be stateside?
Maybe $10 gal.?
Furthermore, with TMX pipeline coming on line soon, you may not be able to source Cdn cude for "peanuts" much longer.
More options to get higher price elsewhere.
vindaloo_u2 wrote:
I would imagine 2/3 of the US strategic reserve consists of sour oil. Quite simple to keep the average cost (sweet + sour) of the spr replenishment low in this case. All the states has to do is continue paying canada peanuts for their 'very bad' sour oil.
To make matters worse (for the canadian economy...not so much for the states), well funded special interest groups (wink wink) block pipelines to the east of canada. This allows the states to ship back about 600k barrels of oil per day to canada's east (at normal prices) as well as refined products of about another 500k bpd. Not even sure if canada has a sizeable petroleum product trade surplus with the states...maybe somebody could check.