Canadian oil shipments take the long route to China - really long
Husky Energy has shipped its first cargo of Canadian crude oil from Newfoundland to China. The cargo ship is carrying 1 million barrels from Husky's White Rose oilfield, located 350 km offshore Newfoundland.
Platts is reporting the light/sweet offshore crude shipment will likely be blended with heavy/sour oil from Venezuela on its way to China.
Although the voyage is rather long, low shipping rates have allowed Asian refineries to source oil volumes from Canada and the US, where crude prices trade at a discount to Brent due to domestic oversupply and pipeline constraints across the continent. BP has also been taking advantage of the arbitrage between WTI and Brent by shipping US oil from Texas to Asia.