An article by a Londer Finance newspaper spells out what I've been trying to let our GasBuddy family know- that I believe rejection of the Keystone pipeline will allow Canadian oil prices to remain at huge discounts to other global crude oils.
Now the proof is here in the pudding
according to the LSE:
"Canadian heavy crude differentials began to slide two days ago, falling from the low $20s a barrel under benchmark West Texas Intermediate to as much as $32 a barrel under WTI on Friday."
See? The above paragraph is showing that the price of Canadian crude oil is falling- even faster than changes in other types of higher quality crude oil!
The same story goes on to say "Traders of Canadian crude had chalked up much of the deepening discounts to booming production in Western Canada and no growth in pipeline capacity to major markets such as the U.S. Midwest."
No new pipeline=cheaper Canadian crude likely to continue! You build Keystone XL, start diverting Canadian oil to the Gulf, or to China, or to South America, and suddenly everyone wants it and the price rises- and who does that hurt? U.S. motorists- who already have Canada to thank because Canada is the number one source of international crude oil.
We build this pipeline and it only hurts us when Canadian oil prices rise- and in the long run, my friends, don't higher oil prices hurt the economy and lead to job losses? Chew on that one.