Page 4 - NorthAmOil Week 16 2021

NorthAmOil COMMENTARY NorthAmOil

Eastern Canadian crude

heads for US West Coast

An unusual shift in demand patterns has led to two shipments

of Eastern Canadian oil to the US West Coast

NORTH AMERICA THE staggered global demand recovery from In the past, oil exports from the Newfound-
the coronavirus (COVID-19) pandemic is lead- land and Labrador to the US have tended to go
WHAT: ing to some unusual routes being taken by car- to the East Coast and Gulf Coast.
Two cargoes of oil from goes of crude from Eastern Canada. The cargoes are reported to be around
Newfoundland and Last week, Bloomberg reported that a sec- 600,000 barrels each, and thus represent com-
Labrador are due to ond tanker was about to be loaded with crude paratively modest amounts of oil. However,
arrive on the US West in Newfoundland and Labrador before setting these are higher volumes than Newfoundland
Coast in May. sail for the US West Coast. The news service and Labrador typically exports. According to
cited its own data on shipping fixtures, saying the Canada Energy Regulator (CER), in 2019,
WHY: the BP-booked Aquasurazo was set to be loaded Newfoundland and Labrador exported 153,445
Consumption patterns over the weekend of April 17-18 and was des- barrels per day to the US and 83,940 bpd to
have temporarily shifted tined for the Cherry Point refinery in Washing- other international locations.
because of the pace of ton State. The unusual voyages the two tankers are
COVID-19 recovery. The long, costly trip was anticipated to undertaking illustrate the disruption to regu-
include transit through the Panama Canal and lar consumption patterns, caused by the une-
WHAT NEXT: indeed, vessel-tracking data showed this week ven pandemic recovery process. Various levels
The longer-term outlook that the tanker was located in the Caribbean Sea, of ongoing lockdowns in Europe – as well as
for Eastern Canada’s having departed Newfoundland and Labrador domestically in Canada itself – mean that
oil industry is highly on April 21. demand there remains muted. Meanwhile, a fast
uncertain. This comes after another tanker, chartered roll-out of vaccines for coronavirus (COVID-
by Chevron, departed Newfoundland and Lab- 19) in the US is helping boost consumption
rador earlier in April, destined for California. there as various states then ease pandemic-re-
Both tankers are due to arrive at their destina- lated restrictions.
tions in May. Indeed, California – the most populous state

P4 www. NEWSBASE .com Week 16 22•April•2021