Canada Braces For Oil Cuts As Storage Nears Limit

The Covid-19 virus and the ongoing oil price war have created such a large global supply surplus that Western Canada’s oil production will need to be cut from April by some 11%, or 440,000 barrels per day (bpd), Rystad Energy estimates, as the country is days away from running out of available storage capacity. Western Canada’s storage infrastructure has a generally accepted maximum storage capacity of approximately 40 million barrels. Based on our calculations, more than 30 million barrels of crude oil and diluted bitumen is already…