High Noon on the Gulf Coast: Canada, Saudi oil set for showdown

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Source: Reuters

By Catherine Ngai

NEW YORK Tue Jan 6, 2015 7:56am EST

(Reuters) - As a test of wills between OPEC nations and U.S. shale drillers fuels a global oil market slump, a brewing battle between Canadian and Saudi Arabia heavy crudes for America's Gulf Coast refinery market threatens to drive prices even lower.

While the stand-off between the oil cartel and U.S. producers of light, sweet shale oil has captured the limelight in recent months, the clash over heavier grades - playing out in the shadowy, opaque physical market - may put even more pressure on global prices that have halved since mid-2014.

Two factors will come into play over the next few weeks: From the North, new oil pipelines will pump record volumes of Canadian crude to the southern refineries, many better equipped to process heavy crudes than lighter shale oil.

From the Middle East, top exporter Saudi Arabia is offering crude at discounted prices in an attempt to defend its remaining share of the important regional market, which has shrunk by more than half in recent months.


Read more: http://www.reuters.com/article/2015/01/06/us-markets-oil-saudi-osp-analysis-idUSKBN0KF10X20150106

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Canada vs Saudi Arabia. I don't know who will win, but I've a samn good idea who the losers will be!

[upaloopa]

1. New oil pipelines? Did we lose the keystone XL

battle and no one told us?

[RedStateLib]

2. No and Yes

No because this is talking about heavy crude from Canada and the Keystone will move tar sands coal/oil and yes because the Republicans are in the majority and have sworn to make it happen.

[CANDO]

3. Prez Veto looming....

And a Dem Senator saying there is enough votes to sustain the veto. Pull up a chair...should be entertaining.