TD Cowen only sees potential impact on energy companies from prolonged Canadian rail strike
** 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 CNR.TO, Canadian Pacific Kansas City CP.TO 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 IMO.TO and Suncor SU.TO), 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
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