Canadian Crude Prices on the Rise in the Midwest
TransCanada has confirmed that Canadian crude prices will increase in the Midwest if the Keystone XL pipeline is built. In an article by the Associated Press, TansCanada admits that crude oil prices will increase, but that it will still be the most inexpensive option for the United States.
“But Canadian crude oil is still the cheapest crude oil available to Americans by volumes,” Spokesman Terry Cunha said. Canadian crude generally fetches $25 a barrel less than most oil on U.S. markets, in part because of the difficulty in transporting it.
Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, the Dakotas, Ohio, Oklahoma, Tennessee and Wisconsin are the states that would be affected by the $3-a-barrel price increase.