Western Canadian crude prices continue to fall - 660 CITYNEWS
Loading articles...

Western Canadian crude prices continue to fall

Pumpjacks pump crude oil near Halkirk, Alta., June 20, 2007. THE CANADIAN PRESS/Larry MacDougal

CALGARY (660 NEWS) – The gap just keeps getting bigger.

Western Canadian Select Crude is selling at its biggest discount on record compared with West Texas Intermediate as many Canadian oil producers fetch more than $50 US-a barrel less than American sellers.

GasBuddy’s Dan McTeague said Canadians have nobody to blame but themselves because pipelines are not getting built to access world markets.

“Those who want this thing (oil) left in the ground are getting their wish, but it’s coming at the cost of every Canadian. We better understand the government deficits, revenues, are going to be down — not just in Western Canada, but it also affects things like equalization payments for provinces like Quebec, that hold out their hand for extra money at a time when the revenues are plummeting. They may very well find a sting in the not too distant future,” he said.

McTeague says there are a number of other factors also driving down prices, including a large refinery shut down in the U.S. that usually buys a lot of Canadian crude.

He said the Canadian economy is losing $120-million a day, thanks to the discount.