Skip to main content

Rail cars wait for pickup in Winnipeg on March 23, 2014.

John Woods/The Canadian Press

Western Canadian oil stocks climbed to a record high 39 million barrels as of Nov. 29, due to a temporary outage of the Keystone oil pipeline and a strike by Canadian National Railway Co. workers, data provider Genscape said Thursday.

Despite the rail strike, Canadian rail loadings in November averaged a record-high 351,000 barrels a day of oil, Genscape oil-market analyst Dylan White said in a statement.

“Canadian markets remain hypersensitive to any operational disruption, particularly on outbound pipelines,” Mr. White said.

Story continues below advertisement

Alberta producers have struggled to move crude through congested pipelines, resulting in the provincial government curtailing production this year to reduce a glut.

The United Conservative Party government is aiming to remove the curtailments sometime next year, but bottlenecks worsened after an Oct. 29 leak in North Dakota temporarily shut down TC Energy Corp.’s Keystone, a pipeline that runs from Alberta to Nebraska, for 12 days.

Keystone currently runs at reduced pressure.

Rail shipments picked up after the outage, but those were hampered by an eight-day CN strike.

Oil supply increases contributed to big inventories as maintenance at major oil sands sites concluded, White said.

The discount on heavy Canadian crude compared with U.S. light oil widened to an 11-month high after the Keystone outage, according to NE2 Canada Inc. It has since narrowed modestly, trading at a $20.05 discount in early activity Thursday.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter
To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies