Crude-by-rail loadings in Canada bounce back on improved economics

Canadian crude-by-rail loadings in April rebounded 47,000 bpd from the March monthly average. According to Genscape, wider Canadian crude differentials and increased demand from Gulf Coast refiners, in the wake of sanctions on Venezuela’s oil sector, made rail transportation more attractive to some shippers.

Rail loadings in Western Canada finished April at an average of 197,000 bpd, up from 150,000 bpd in March and 144,000 bpd in February, the lowest monthly average since May 2018.

Loadings started to decline in mid-January after mandated crude production cuts from then-Alberta Premier Rachel Notley aimed to boost Canadian crude differentials and drained regional inventories went into effect.