Canadian crude-by-rail exports climb 48 pct in October

Published 2017-01-11, 04:29 p/m
Canadian crude-by-rail exports climb 48 pct in October
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By Nia Williams

CALGARY, Alberta, Jan 11 (Reuters) - Canadian crude-by-rail exports to the United States rose 48 percent in October versus the previous month, National Energy Board data showed on Wednesday, as volumes recovered from a steep slump earlier in the year.

Canada shipped 102,554 barrels per day of crude oil by rail in October, up from 69,292 bpd the previous month.

However, the October total was still 39 percent lower than the volume shipped the same month a year earlier.

Crude-by-rail shipments in Canada have fallen off sharply since peaking at around 180,000 bpd in late 2014 due to weak global crude prices and sufficient takeaway capacity on Canadian export pipelines.

Volumes dwindled to four-year lows of around 43,000 bpd in June this year but with production from northern Alberta's oil sands expected to climb and limited space on pipelines, some analysts expect crude by rail to pick up again.

"If you just look at the supply growth we are anticipating this year and you consider the takeaway capacity I think we will see rail volumes increase throughout 2017," said ARC Financial analyst Jackie Forrest.

Crude oil output from western Canada is forecast to increase by around 230,000 bpd this year.

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