Cenovus Energy Inc. shares increased nearly seven per cent after the oilsands producer said it signed three-year deals with Canada's major rail companies to move 100,000 barrels per day of heavy crude oil by rail. The Calgary-based company's shares gained 81.5 cents or 6.8 per cent at $12.825 in late-morning trading on the Toronto Stock Exchange. Chief executive Alex Pourbaix said after markets closed on Wednesday the deals will allow the company to go around clogged pipelines that are linked to multi-year high discounts in prices for Canadian heavy oil versus New York-traded benchmark crude. Cenovus says it has struck a deal with Canadian National Railway to move oil from Cenovus's terminal northeast of Edmonton and with Canadian Pacific Railway through USD Partners' terminal in Hardisty, Alta. "While we remain confident new pipeline capacity will be constructed, these rail agreements will help get our oil to higher-price markets."

Source: CBC News September 27, 2018 16:52 UTC