Baytex Energy Corp T.BTE

SPR Note the change in sweet & sour

[BayStreetWolfTO]

Remaining SPR release. Sour will start switch to mainly sweet.


US SPR update (all in mb):

Aug16-Sep30: offered:  45 (15.5sour,29.5sweet), sold 38.9

Sep16-Oct21: offered: 20 (2.8sour,17.2sweet), sold 20.05

 

[HighOctane89]

That will definitely be a boost to the price of WCS , the Texas gulf coast refineries need heavier grades for best operational performance . This could close the discount back to $10 or $12 from the $20-ish discount we have now .

[nikolaos]

Question for you BSW, will this impact refining in the states and cause a drawdown of stockpiles?  From what I understand they ship their sweet and refine the sour?

[BayStreetWolfTO]

Nik, I would say the oil market is global so certainly any release of "emergency" reserves help the global oil supply. In the US each individual refinery is optimized for its marketplace and is built to run optimally on a certain type of crude oil and to produce a certain mix of gasoline and diesel fuel. And so it may be that the type of oil being offered from the Strategic Petroleum

[nikolaos]

As always thank you for the thorough explanation. Ive been learning quite a bit about the oil markets as a result of your insightful posts. Keep them coming!