Canadian crude at 4-1/2 year high versus WTI as tariffs rattle market
April 2, 2025
By Amanda Stephenson
Canadian crude oil prices reached a 4-1/2 year high compared to the U.S. benchmark West Texas Intermediate (WTI) on April 2, 2025, due to threatened U.S. tariffs and stronger sanctions on competitors like Venezuela. The discount of Western Canada Select (WCS) to WTI narrowed to $9.40 a barrel, the smallest since September 2020, despite earlier expectations of a wider gap amid trade uncertainty. RBN Energy analyst Martin King noted surprise at this trend, attributing it to increased Canadian oil exports and a significant reduction in Alberta's oil inventories.
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The U.S. imported a record 4.42 million barrels per day from Canada last week, the highest since January. The tighter discount also reflects global demand for heavy crude, driven by OPEC+ cuts and shipping activity. King suggested that if Canadian oil remains exempt from U.S. tariffs, demand from Gulf Coast refiners could push the discount even lower.
