ANOTHER CUT IN DEMAND FOR CRUDE OIL

   As if pipeline bottlenecks weren’t enough, Canadian heavy oil producers are facing a new barrier to marketing their crude.
   New rules limiting the amount of sulphur allowed in shipping fuel is expected to cut demand for both high-sulphur fuel oil and the sour crude that yields it. In Canada, that could extend — or worsen — the biggest price slump in nearly five years.
    As surging production runs up against limited pipeline space, Western Canada Select’s discount to West Texas Intermediate widened to more than $31 a barrel this month from an average of about $13 a barrel last year, data compiled by Bloomberg show. The bigger discount is needed to incentivize shipping by rail, which costs more, said Kevin Birn, a director on the North American crude oil markets team at IHS Markit.