tradingkey.logo

CANADA-CRUDE-Discount on Western Canada Select heavy crude widens

ReutersMay 13, 2025 10:04 PM

- The discount on Western Canada Select (WCS) to the North American benchmark West Texas Intermediate futures (WTI) CLc1 widened on Tuesday.

WCS for June delivery in Hardisty, Alberta, settled at $9.15 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, after having settled at $9.10 under the U.S. benchmark on Monday.

Canadian heavy crude has been trading at a tight discount in recent months in part due to the opening of the Trans Mountain pipeline expansion one year ago, which boosted the country's oil export capacity.

Trans Mountain still has excess capacity available, which means the WCS discount is sustainable at a tight discount for months or even the next several years, barring a black swan event, said Enverus Intelligence analyst Michael Berger.

Canadian crude has also benefited from U.S. sanctions on Venezuela and other countries, which is boosting demand for non-sanctioned heavy crude producers.

Globally, crude oil futures climbed more than $1.60 a barrel on Tuesday, lifted by a temporary cut in U.S.-China tariffs and a better-than-expected inflation report.

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Related Articles

KeyAI