TRANSCANADA SAYS BEGAN FILLING 700,000 BPD GULF COAST LINE ON SATURDAY, DOES NOT SAY WHEN PROJECT WILL ENTER COMMERCIAL SERVICE

TRANSCANADA SAYS FILLING GULF COAST LINE WILL REQUIRE ABOUT THREE MILLION BARRELS OF OIL TRP.TO – RTRS

Well here we go.  We were expecting this since they are going to start sending barrels down in mid January, but now it’s going to be more about where we send those refined products.  We do know that the US economy is picking up with an unseasonal jump in demand, but the question now is where do exports lie?

There was a report from Genscape that said crude oil supply is growing in ARA storage in Europe, but to us, that helps validate the idea that refineries in EU are hitting the maintenance season and possibly slowing on the weak refining margins.  We may continue to see the WTI/Brent continue to come in, but we’re thinking that we’re pushing away from the norms.  We may see US refining “cracks” find support regardless as long as domestic demand and export demand keeps pace with room for higher.