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Battle of the oil titans
What’s going on with Esso and the apparent exchange agreement with Petrocan in Montreal?
If Esso leaves the Quebec market, this would place the Ultramar/Esso exchange agreement in jeopardy as there would be limited options for Ultramar in Ontario.
This is especially true when you take into consideration the Suncor/Petrocan merger which is likely to be approved in September.
The Suncor refinery in Sarnia has been under-utilized and this will certainly change for the better for the merged company, but will result in Utramar scrambling for supply with the ultimate result being higher prices.
Upward price pressure will also be evident in Quebec with one less player in the game. So what do exchange agreements mean for the eastern and western Canada?
There is a very strong assumption that there will be ramifications for bulk and cardlock diesel. Want to read more? Check out the En-Pro Energy Report… send us an email to info@en-pro.com.
By: Roger McKnight, Senior Petroleum Advisor
John Voros, Petroleum Advisor