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Cheapest crude oil on the planet can be found here {Canada}
Market Watch ^ | Jan 14, 2016 | William Watts

Posted on 01/15/2016 5:05:41 AM PST by thackney

Oil futures this week dipped below $30 for both West Texas Intermediate, the U.S. benchmark, and Brent crude, its more global, North Sea counterpart. That's brutally low and analysts have been lining up to predict further declines, but for some producers, oil in the upper $20s would be welcome relief.

The cheapest oil on the planet right now, with the possible exception of some very low-quality crudes, can be found in the Canadian oil sands, said Tom Kloza, global head of energy analysis at Oil Price Information Service.

The grade, known as Western Canada Select, was changing hands Wednesday afternoon around $15 below WTI That put the price at nominally above $15 a barrel, but the story for hard-hit oil-sands producers is even more bleak. That's because the crude produced by the oil sands, commonly referred to as bitumen, is extremely viscous, Kloza noted.

To flow through pipelines, it must be blended with a diluent, such as synthetic crude or condensate. Once that is taken into account, producers are actually getting closer to $10 to $11 a barrel for the bitumen, Kloza said.

That's got to hurt, even if the blow has been cushioned by the Canadian dollar's fall to a nearly 13-year low versus its U.S. counterpart....

(Excerpt) Read more at ...

TOPICS: Canada; News/Current Events
KEYWORDS: energy; methane; oil; oilsands; opec; petroleum
Import more cheap oil and export expensive oil.

Keystone XL would help lower prices in the US.

1 posted on 01/15/2016 5:05:42 AM PST by thackney
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To: Squawk 8888


2 posted on 01/15/2016 5:06:11 AM PST by thackney (life is fragile, handle with prayer)
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