Heavy Canadian Crude Seen Within $10 of WTI as Demand Picks Up
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Western Canadian Select crude’s discount to West Texas Intermediate is poised to narrow to less than $10 a barrel for the first time in two years as new pipelines supply record volumes of the heavy oil to refiners.
The heavy oil grade’s discount to the U.S. benchmark narrowed 5 cents to $12.50 a barrel at 1:56 p.m. Mountain time, the smallest since Feb. 2, according to data compiled by Bloomberg. So far this year, the discount has traded at its narrowest since 2010 on a seasonal basis. New pipelines and rail capacity have increased Canadian exports to the U.S. as refiners ramp up operations after maintenance and before the summer driving season.