More U.S. oil is going to Canada
Oil traders are moving increasing amounts of U.S. crude oil from Texas to Canada, undercutting U.S. East Coast refiners who are legally required to use more expensive U.S. vessels to move oil to their locations.
Tanker brokers say at least seven of the shipments have already been booked on the spot market this year, up from less than six altogether in 2012.
The firms, including commodities company Trafigura and Australian bank Macquarie, have hired foreign-flagged tankers to move U.S. shale oil to Canada.
However U.S. refiners must hire U.S.-owned and operated ships under a law known as the Jones Act, costing them as much as $54,000 more per day than a foreign-flagged ship sailing to Newfoundland.
Read in full: http://shipandbunker.com/news/am/283776-traders-shipping-more-us-oil-to-canada