Canadian Oil Sands Maintenance to Cut Crude Production by 300k Barrels per Day

Canadian oil sands maintenance is set to cut crude production by 300,000 barrels per day in September, putting pressure on US refiners that have been running at full speed for months.

The disruption will squeeze an already tight global fuel supply, with replacement heavy crude scarce due to low Canadian inventories and a slow recovery in Venezuela's oil production.

Venezuela exported 1.16 million barrels of crude oil daily last month, but this is still below pre-war levels, while US refineries have been relying on imports from Canada, which will be disrupted by maintenance activities.

The shortage could push refining margins even higher, particularly for diesel, adding further pressure to fuel prices and economic growth.