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Page added on October 13, 2018
China Replaces Venezuela Oil With Canada Imports
Chinese refiners are buying more and more very cheap heavy Canadian crude oil to make up for the dwindling supply of Venezuela’s heavy grades as China’s road construction sector—a key consumer of the heavy oil’s bitumen yield—is booming.
China purchased 1.58 million barrels of heavy Canadian crude oil for loading in September, up by nearly 50% compared to the 1.05 million barrels it imported from Canada in April, Bloomberg quoted data by cargo-tracking and intelligence company Kpler, Oil Price reported.
Analysts expect the Chinese purchases of heavy Canadian oil to continue to be high in October amid the typically peak construction season.
The high Chinese demand for bitumen-yielding heavy crude coincides with reduced supply of Venezuela’s Merey crude grade due to the crumbling production in the Latin American country.
But more importantly, China is sourcing heavy crude from Canada at a bargain price—although international benchmark oil prices have rallied in recent weeks, Canada’s oil is heavily discounted due to severe bottlenecks because of a lack of pipeline capacity.
6 Comments on "China Replaces Venezuela Oil With Canada Imports"
Darrell Cloud on Sat, 13th Oct 2018 5:24 pm
Someone let meme slip. Venezuelan oil is supposed to keep the happy motoring crowd going for the next fifty years. Acknowledging that bitumen is a key ingredient in asphalt shatters the fantasy.
Go Speed Racer on Sun, 14th Oct 2018 3:25 am
One day, when the oil runs out, we won’t even be able to make a road. Not unless it’s made of crushed gravel, or maybe cobblestones.
Windmills or even nuclear reactors
don’t make asphalt.
makati1 on Sun, 14th Oct 2018 4:04 am
Nor do they make concrete in the volumes that will be needed just to repair roads and bridges. I doubt if they could even power rock crushers for millions of tones of gravel. Techie dreams.
JuanP on Sun, 14th Oct 2018 9:45 am
“China stops buying US oil”
https://www.rt.com/business/441217-china-us-oil-supplies/
rockman on Sun, 14th Oct 2018 1:18 pm
Not really big news Juan. Historically China has never been a big importer of US oil. From 2000 to 2015 it imported a TOTAL of 2 million bbls.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCREXCH1&f=A
During that 15 year period the US exported about 500 million bbls of oil. IOW China bought about 0.4% of our exports. Chinese imports only jumped up the last 2 years or so.
rockman on Sun, 14th Oct 2018 1:23 pm
Juan – Sorry, US export link:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrexus2&f=a