Reported about 1 month ago
The expansion of the Trans Mountain pipeline has prompted Canadian crude shipping competitors to lower their transport rates and to focus on different grades of oil. As shipments via Trans Mountain (TMX) commenced earlier this year, Canadian crude imports to the U.S. reached record levels, leading Enbridge to announce an 11% rate cut for heavy crude transport. This shift may impact other major pipelines previously handling Canadian oil, as the influx of oil from TMX alters the competition landscape. Although the current reduced rates may benefit consumers, analysts expect that the effects will be short-lived as Canadian crude production is anticipated to rise significantly in the coming years.
Source: YAHOO