A financial analyst says prices being paid for Western Canadian oilsands bitumen have fallen so far that producers are losing money on every barrel sold into the spot market. Analyst Matt Murphy of Tudor, Pickering, Holt & Co. says recent headlines have been focused on the falling value of the Western Canada Select (WCS) price, but that measure is for a blend of heavy, sticky bitumen and the light oil needed to dilute it so it can flow in a pipeline. The price of WCS fell to about $19 US per barrel on Thursday, about $52 per barrel below the benchmark U.S. West Texas Intermediate price. But Murphy says the condensate used to dilute the bitumen was selling for about $63 per barrel at the same time and that means the bitumen part of the WCS barrel was actually fetching between negative 11 cents and negative 28 cents per barrel. It's the first time that has happened, he says, adding bitumen prices have always been in positive territory — even in early 2016, when U.S. oil prices fell below $30 per barrel.

Source: CBC News October 12, 2018 18:33 UTC