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Planned Production Cuts Are Already Easing Alberta’s Oil Crisis

  • Canadian crude prices surging even before policy takes effect
  • ‘Proof is in the price,’ says Auspice Capital’s Pickering
Canadian Heavy Crude Surges After Alberta Imposes Cuts
Photographer: Ben Nelms/Bloomberg

Alberta’s oil-production curtailment plan has largely accomplished its mission -- even before it has gone into effect.

Since Canada’s top oil-producing province announced mandatory output curbs on Dec. 2, the spot price of Western Canada Select crude has surged more than 70 percent. The grade’s discount to the U.S. benchmark has been chopped in half to around $13 a barrel, the narrowest in more than a year. Other blends, including Edmonton Mixed Sweet and Syncrude, also are surging.