Canadian exports of crude oil by rail are bouncing again after falling to an eight-year low in July.

The Canada Power Regulator says rail shipments of oil in September amounted to 94,440 barrels per day, almost double the 51,000 bpd shipped in August.

Solely 39,000 bpd was shipped in July. That is lower than a tenth of the file 412,000 bpd moved by rail in February.

Rail transportation of crude oil is taken into account to be dearer than transport by pipeline so shippers have a tendency to make use of it solely when pipelines are full or if the vacation spot market gives a lot greater costs than may be achieved in Canada.

The CER says the decrease use of rail in contrast with February outcomes from decrease crude oil manufacturing in Western Canada as world oil demand slumps because of the COVID-19 pandemic.

The lowered manufacturing ranges have freed up extra space on export pipelines.


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