Selected Crude Oil Price Daily April 2016

Explanatory Note for Crude Oil Prices

• All prices are settlement prices, for delivery in the prompt month.
• NYMEX:  The New York Mercantile Exchange (NYMEX), the world's largest physical commodity futures exchange.

Canadian Heavy Hardisty:  Western Canada Select (WCS) is the main benchmark price for Canadian heavy crude and specifies delivery at Hardisty, Alberta. Prices are based on daily closing prices for WCS posted on NYMEX in US dollars per barrel. Prices are converted to Canadian dollars per cubic metre using the Bank of Canada’s daily noon exchange rate and applying a volumetric ratio (6.29:1) to convert the price per barrel to a price per cubic metre.

Canadian Heavy Chicago:  Prices are based on Canadian Heavy Hardisty with pipeline tolls added for transportation to refineries in the Chicago area. Pipeline toll rates are obtained from the National Energy Board (NEB) and the US Federal Energy Regulatory Commission (FERC) which regulate pipeline tolls in Canada and the US respectively.

Canadian Light Sweet:  Canadian Light Sweet (CLS) is the main Canadian benchmark price for light sweet crude and specifies delivery at Edmonton, Alberta. Prices are based on daily closing prices for CLS crude posted on NYMEX in US dollars per barrel. Prices are converted to Canadian dollars per cubic metre using the Bank of Canada’s daily noon exchange rate and applying a volumetric ratio (6.29:1) to convert the price per barrel to a price per cubic metre.

Canadian Light Sweet Chicago:  Prices are based on Canadian Light Sweet with pipeline tolls added for transportation to refineries in the Chicago area. Pipeline toll rates are obtained from the National Energy Board (NEB) and the US Federal Energy Regulatory Commission (FERC) which regulate pipeline tolls in Canada and the US respectively.

West Texas Intermediate Chicago:  West Texas Intermediate (WTI) is the main benchmark price for light sweet crude in North America and specifies delivery at Cushing, Oklahoma. Prices are based on daily closing prices for WTI posted on NYMEX in US dollars per barrel. Prices are converted to Canadian dollars per cubic metre using the Bank of Canada’s daily noon exchange rate and applying a volumetric ratio (6.29:1) to convert the price per barrel to a price per cubic metre. Pipeline tolls are added for transport from Cushing to Chicago with toll rates obtained from the US Federal Energy Regulatory Commission (FERC) which regulates pipeline tolls in the US.

Brent Chicago:  Brent is the main benchmark price for light sweet crude in international markets and specifies delivery at Sullom Voe terminal, United Kingdom. Prices are based on daily closing prices for Brent posted on NYMEX in US dollars per barrel. Prices are converted to Canadian dollars per cubic metre using the Bank of Canada’s daily noon exchange rate and applying a volumetric ratio (6.29:1) to convert the price per barrel to a price per cubic metre. Transportation costs are added for shipping Brent crude by tanker to the US Gulf Coast, and transporting by pipeline to Chicago. Tanker rates are obtained from Bloomberg and pipeline toll rates are obtained from the US Federal Energy Regulatory Commission (FERC).

Note: In recent years with the expansion of US domestic production and increased crude imports from Canada, Brent is no longer being shipped to Chicago refineries. Brent Chicago is a hypothetical crude oil price.

Brent Montreal:  Brent is the main benchmark price for light sweet crude in international markets and specifies delivery at Sullom Voe terminal, United Kingdom. Prices are based on daily closing prices for Brent posted on NYMEX in US dollars per barrel. Prices are converted to Canadian dollars per cubic metre using the Bank of Canada’s daily noon exchange rate and applying a volumetric ratio (6.29:1) to convert the price per barrel to a price per cubic metre. Transportation costs are added for shipping Brent crude by tanker to Portland, Maine, where it is transferred to a pipeline and transported to Montreal. Tanker rates are obtained from Bloomberg and pipeline toll rates are obtained from the National Energy Board (NEB) and the US Federal Energy Regulatory Commission (FERC) which regulate pipeline tolls in Canada and the US respectively.

Brent Sarnia:  Brent is the main benchmark price for light sweet crude oil in international markets and specifies delivery at Sullom Voe terminal, United Kingdom. Prices are based on daily closing prices for Brent posted on NYMEX in US dollars per barrel. Prices are converted to Canadian dollars per cubic metre using the Bank of Canada’s daily noon exchange rate and applying a volumetric ratio (6.29:1) to convert the price per barrel to a price per cubic metre. Transportation costs are added for shipping Brent crude by tanker to Portland, Maine, where it is transferred to a pipeline and transported to Montreal. Tanker rates are obtained from Bloomberg and pipeline toll rates are obtained from the National Energy Board (NEB) and the US Federal Energy Regulatory Commission (FERC) which regulate pipeline tolls in Canada and the US respectively.

Note: With the reversal of the Enbridge Line 9 pipeline, Brent is no longer being shipped to Sarnia refineries. Brent Sarnia is a hypothetical crude oil price.