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Canadian Heavy Oil Strengthens as Crude-by-Rail Picks Up

  • Discount to WTI below $10-a-barrel, the smallest since April
  • Canadian Pacific Railway sees rail volumes rising 20% in 3Q
'Bomb Train' Terminal Suits Seen Slowing U.S. Oil Independence

Photographer: David Paul Morris/Bloomberg

Updated on

Heavy Canadian crude’s discount to U.S. benchmark futures narrowed to the smallest since April as crude-by-rail shipments were forecast to increase.

Western Canadian Select, an oil sands benchmark, strengthened to a $9.10 discount on Wednesday, data compiled by Bloomberg show. The gap has narrowed $4.15 this month, with $1.30 shed on Tuesday. Prices are closing in on West Texas Intermediate futures after Canadian Pacific Railway Ltd. said crude-by-rail volumes were expected to rise 20% in the third quarter from about 160,000 barrels a day in the second quarter.