Irving Oil Turns to Newfoundland Crude Amid Iranian Supply Disruptions
Canada's largest refinery, Irving Oil Ltd., is turning to Newfoundland for crude oil due to disruptions in Middle Eastern supplies caused by the war on Iran. The company has been granted permission to use foreign tankers to transport 650,000 to 680,000 barrels of crude from the Whiffen Head terminal in Newfoundland and Labrador to its Saint John refinery in New Brunswick between April 25 and May 25.
The move is a result of the Strait of Hormuz being choked off by the U.S.-Israel war on Iran, which has led to the most significant crude oil supply disruption in recent history. Irving Oil had previously relied heavily on crude from the Persian Gulf, with Saudi Arab Light being the second most commonly used oil grade since 2020.
The company's decision to use Newfoundland oil is a temporary measure, and it is unclear how long the disruptions will last. The Canadian Transportation Agency has issued waivers for foreign tankers to transport domestic crude, allowing Irving Oil to access Canadian crude oil.