Phillips 66, which says it is the largest industry buyer of Canadian crude, operated nearby refineries at 108% of capacity during the third quarter, generating an average profit of $23.61 per barrel processed at the locations, which lifted quarterly profits to nearly $1.5 billion or an 81% jump for the same period year-over-year.
“We are seeing the benefits of integration as we capture value from advantaged feedstock from the Permian and Western Canada for our North American refineries,” Exxon Chief Executive Darren Woods told the WSJ, adding that cheap Texas and Canada crude helped push third quarter profits up to $6.2 billion.
Heavy Canadian crude traded an average $28 per barrel below U.S. benchmark prices over the third quarter, and Permian crude traded at an average $14 per barrel discount.
As new pipelines are still in the works, oil in both regions are expected to remain relatively cheap for at least another year.
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