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Photo by Luke Sharrett/BloombergUnited States refiners are facing a looming supply drop from their biggest foreign crude supplier at a time when they need the oil the most.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorCanada supplies the U.S. with more than four million barrels a day of crude, most produced in the oil-rich heartland of northern Alberta and then sent south to refineries in the U.S. Those refineries are processing the most crude oil in eight years, U.S. government data show, as they look to take advantage of diesel margins that hit a record this week.But their main international supply source is set to be constrained in the coming months. Planned maintenance in the Canadian oil sands is set to take about 300,000 barrels a day of production offline next month, according to Rystad Energy. The shortfall will be difficult to make up as Alberta’s stockpiles are also at their lowest in more than a year.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againParticularly vulnerable to a Canadian supply squeeze are refineries in the U.S. Midwest, which rely on the country’s oil for about 70 per cent of their supply. U.S. crude imports from its northern neighbour last week fell the most since May, according to Energy Information Administration data.Canada has been a key supplier to the U.S. during the Iran War, which has curtailed Middle East exports through the critical Strait of Hormuz. On Thursday, a flare up in tensions caused U.S. crude futures on Thursday to their highest in several weeks. The increased oil prices are likely to be reflected at gas pumps ahead of the Labor Day holiday in September, when drivers typically hit the roads for the three-day weekend.Canadian oil prices have recently spiked as refiners thirst for supply. Diesel-rich synthetic crude’s premium to U.S. futures rose to almost US$20 a barrel last week, according to Modern Commodities, the highest since an April spike in response to the Iran War. The grade is produced from oil sands bitumen that’s processed in refinery-like upgraders.Companies including Suncor Energy Inc. and Canadian Natural Resources Ltd. plan to shut equipment for maintenance, including work at the Syncrude upgrader that was delayed from earlier in the year.The Canadian shortfall is already being reflected in two major export pipeline systems saying they aren’t limiting space for producers as they had been, indicating a lower volume being shipped.Enbridge Inc. isn’t going to ration space in September on its Mainline, Canada’s largest oil export pipeline system, because of maintenance at both production facilities and at U.S. refineries, the company said on Wednesday. The most recent time apportionment was zero on the system was in October of last year. The Trans Mountain Corp. pipeline from Alberta to the Vancouver area also stopped rationing space on its system in August for the first time in two months.Inventories at the main storage hub of Hardisty, Alberta, are near their lowest since March of 2025 and the second lowest level in data stretching back to 2017, according to Kpler data. In March of last year, companies were trying to ship crude to the U.S. ahead of tariffs that were expected to apply to oil. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.