Another black eye for Canada
Canada has major pipeline export problems. The country produces more oil than it can move and that's created major problems. Late last year Canadian oil was trading at a $52 discount to WTI and that forced the province of Alberta to mandate a 250K bpd production cut.
There are three pipelines that have been in the works forever but approving them has been an ongoing nightmare for domestic and international reasons.
The long-delayed Keystone XL pipeline will take Canadian oil to the Gulf of Mexico and approving it has been a battle between Trump and the courts.
The Line 3 expansion has been delayed by Minnesota regulators but it's down to the final permitting process and is highly likely to be completed in late 2020.
Trans Mountain will carry oil to Canada's west coast and was originally approved for construction by Kinder Morgan but they ran into a regulatory nightmare and that forced the federal government to buy it from them. Since then it's had more delays.
It's quite possible this issue will cost Justin Trudeau and the Liberals the election, which is coming in the fall. It was also a major contributor to the government losing this week's election in Alberta.
This news alone probably isn't going to hurt CAD but there is deep frustration with Canada on resource projects and this reinforces the inability to get anything done.
