Canadian crude oil falls into cabbage price: two beers can be exchanged for a barrel of oil

According tomedia reports, because of the outbreak of new crown pneumonia caused the global demand for crude oil plummeted, originally much cheaper than U.S. crude oil and Brent crude oil, Heavy Canadian oil has been completely reduced to “white cabbage price.” In Canada, a pint of beer costs about $5, and now you can get a bucket of Western Canadian Select Crude Oil (WCS) for less than $5. (Note: 1 U.S. product is about 473 ml, equal to two U.S. cups.) )

Canadian crude oil falls into cabbage price: two beers can be exchanged for a barrel of oil

Screenshot (from: CME Group website)

ACCORDING TO LOCAL TRADERS, WCS CRUDE IS TRADING AT ABOUT $4.18 A BARREL.

To be fair, WCS is not a “pick” crude oil. This is a heavier mixture than WTI crude oil. If Texas crude oil is like water, Canadian crude oil is like maple syrup. Because of this, it always trades at a price well below the price of WTI crude, usually at $8 to $15 per barrel. But the price of $4 is still incredible.

Traders say one reason for this is that the Chinese market is basically closed, so you can’t ship it to Asia. And transporting it to the Gulf of Mexico by rail and pipeline would add about $8-10 to the price, and no one there really wanted it because there was now all the crude oil and the tanks were full.