© Reuters / Chris Helgren
Canadian oil producers are in an increasingly tough predicament. With high and increasing oil demand around the globe over the last year, Canadian oil production has increased accordingly.
All of this is simple and predictable economics, but now Canadian oil has hit a massive roadblock. Producers have the supply, and they have more than enough demand, but they don't have the means to make the connection. Canadian export pipelines simply don't have the capacity to keep up with either the supply or the demand.
Canadian oil producers have now maxed out their storage capacity, and the Canadian glut continues to grow while they wait for a solution to the pipeline problem to materialize. As pipeline space is at a premium and storage has hit maximum capacity, oil prices have fallen dramatically, and the differentials that had previously been hitting heavy oil hard in Canada (now at below $18 a barrel for the first time since 2016) have now spread to light oil and upgraded synthetic oil sands crude as well, leaving overall Canadian oil prices at
record lows.
Now, adding to the problem, growth in oil demand has begun to slow in the wake of skyrocketing United States production and the weakening of US-imposed sanctions on Iranian oil. First, the US granted waivers to eight nations to continue buying Iranian oil despite strong rhetoric, and now the European Union has undermined the sanctions even further.
Comment: Soegiharto Notonegoro, a.k.a. Sino, a.k.a. M1, has since been arrested.
It's difficult to consider this guy and his organization a 'puppet master', given the transparency of the fraud, and the socio-economic conditions that give rise to beliefs in such fantastic vehicles of salvation.
Here's a screenshot from their website's homepage: