‘It’s too risky now’: Enbridge pipeline delay spooks traders in long-term Canadian crude market

NEW YORK/CALGARY — North American energy traders are reluctant to take up long-term positions on Canadian crude price moves, preferring to stick to spot deals, as uncertainty around government intervention in the market grows following delays to a critical pipeline project.

While some producers welcomed the government cuts, others including Suncor Energy and Imperial Oil criticized the move for causing uncertainty and unintended consequences, such as disrupting rail shipments of crude.Now, Enbridge’s delay has heightened concerns the government may impose cuts for longer than its current target of year-end.

BROKEN TRUSTNot being able to lock in forward prices typically heightens risk for producers and refiners, leaving them more exposed to fluctuating spot commodity prices. “I won’t take any forward positions in Canada right now. Everyone is wondering what the government is going to do … one announcement can ruin your year,” one trader said.

Further muddying the picture, current Alberta Premier Rachel Notley’s New Democratic Party government is currently trailing in the polls ahead of a spring election, facing a stiff challenge from the United Conservative Party.Alberta government spokesman Mike McKinnon said the cuts had been applied fairly and equitably.

Trudeau has brought Canada’s economy to a grinding halt and the worst is yet to come...

More bad News?! Why not hey.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Enbridge Line 3 pipeline delay spooks traders in long-term Canada crude marketProducers and refiners on both sides of the border say it is more difficult to make a compelling case to buy Canadian oil contracts for later in the year because of price uncertainty.
Source: globeandmail - 🏆 5. / 92 Read more »

Fresh blow to Canada’s oil industry as key pipeline delayed by a yearAlberta was counting on Enbridge’s Line 3 to ease the province’s oil glut and end production cuts
Source: VancouverSun - 🏆 49. / 61 Read more »

A Canadian Housing Market This Bad Normally Means Recession: BMOResidential investment is falling, and that's a clear sign of hard times in Canada's economy, the Bank of Montreal says. Good! Go home, China!!!!! market reflects several influences. Foreign buyers drove up prices in large cities causing a ripple effect. Builders over valuing their build causing higher than market value pricing with help of the real estate industry. Finally, cities which continue to want more tax $
Source: HuffPostCanada - 🏆 61. / 53 Read more »

Canadians are gloomy about the economy, the housing market, their personal finances …This may bode ill for the Liberals Thanks Justin the “Imposter “! except for liberals, they are all sunny ways. because justin said so. So no more sunny ways?
Source: nationalpost - 🏆 10. / 80 Read more »