** TD Cowen says while Canadian rail strike “has the potential to create near-term noise and headline risk, any impacts likely prove transitory for the E&Ps since strikes typically last ~7-10 days and because companies have worked hard to mitigate the risks”
** Says polled E&Ps and service companies do not appear to be concerned about a 1-2 week disruption, but thinks a longer service disruption “could be more problematic”
** Talks between Canadian National Railway, Canadian Pacific Kansas City and Teamsters union have deadlocked, rail companies say they will start locking out workers on Aug. 22
** TD Cowen says “it is our understanding that oil sands operators with excess storage have been aggressively stockpiling diesel in anticipation of this eventuality”
** “For the Alberta-based refiners (Imperial and Suncor ), diesel could temporarily get backed-up into the Edmonton region, potentially negatively impacting Q3/24 refinery utilization rates (but only modestly)”
(Reporting by Seher Dareen in Bengaluru)