Canadian crude-by-rail exports rebound in Q3

Canadian crude-by-rail export volume spiked more than 38 percent to 116,000 barrels per day (bbl/d) in third-quarter 2015 compared with 83,605 bbl/d in the second quarter, according to Canada's National Energy Board.

The exports rebounded last quarter after falling 30 percent in Q2, the board reported.

A narrow price differential between light and heavy crude-oil prices made crude-by-rail exports less attractive, which contributed to the decline in Q2 2015, the board said. But during Q3, the price differential widened, which made rail movement of crude oil more economical than by pipeline.

Still, Canada's crude-by-rail exports in 2015 remain behind volume trends in 2014.

To date, 90 percent of Canadian crude-by-rail exports were destined for the U.S. East and Gulf coasts. In the first two quarters of 2015, monthly crude-by-rail export volumes to the U.S. Gulf Coast averaged 46,500 bbl/d and then increased by more than 20,000 bbl/d in Q3 2015 to nearly 67,500 bbl/d, according to the board.