Where is the cheapest crude oil in the world? And how low can you get that barrel of oil?
WTI has
declined to $30 per barrel, the lowest level in more than 12 years. But
heavy oil producers in Canada would love to have $30 oil.
The
price for a barrel of bitumen, the tar-like oil sands that comes from
Alberta, fell to just over $8 per barrel this week. That is not a typo.
Bitumen traded at $8.35 per barrel on Tuesday.
In fact, Amazon.com sells oil drums
– just the barrel, not the oil – for $78, almost ten times the cost of
the actual bitumen. To be fair, that drum holds 55 gallons instead of
the industry-usual 42 gallons. But even a 30-gallon barrel – again, an
empty barrel – costs 7 times more than the oil sands that would go in it.
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