- Enbridge (NYSE:ENB) refutes criticism that its procedures for nominating barrels of oil shipped through its Mainline pipeline system are partly to blame for Canadian crude prices that have tumbled to their lowest in at least a decade.
- "The Enbridge Mainline system is essentially full," an ENB spokesperson tells Bloomberg. "There is no material capacity to be gained by changing the apportionment and supply verification procedures."
- Canadian Natural Resources (NYSE:CNQ) vice chairman Steve Laut said this week that the current system for nominating barrels on Mainline is partly to blame for low prices and allows "a few players" to exploit others by nominating "air barrels" they do not have or intend to ship.
- "As more and more of these players figure out how to play the game, you’ve actually seen the differential blow out, particularly on light oil," Laut said.
- ENB tells Bloomberg it is open to discussing changes to its apportionment and verification system for nominations but there is "no consensus" on whether such changes are needed.
- Earlier: Record low Canadian crude price shows oil sands best days are past (Nov. 16)
- Now read: Canadian Natural Resources: Takeaways From A Solid Quarter
Original article