Canadian Heavy Oil Stays Home as  U.S. Tanks Fill Up

  • Western Canadian Select is cheaper at Cushing than in Alberta
  • U.S. inventories are filling up, pushing out Canadian crude
Oil storage tanks stand at a refinery in Wilmington, California on April 21.

Photographer: Bing Guan/Bloomberg

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Canadian oil sands producers no longer have an incentive to send their crude toward the Gulf Coast as a glut grows in the U.S. due to the coronavirus pandemic.

Western Canadian Select for May delivery in Alberta was 50 cents more expensive on Tuesday than it was at the U.S. oil storage hub of Cushing, Oklahoma, according to NE2 Group prices.