In recent weeks, the price discount for Canadian heavy crude oil that originates from the oil storage and shipping hub of Hardisty, AB has narrowed to near a two-year high. For heavy oil that is shipped via tanker from Westridge, BC after being transported on the expanded Trans Mountain Pipeline from Edmonton, AB, its price discount has narrowed to its smallest value since it began trading last year.
Western Canadian Select (WCS), the primary heavy crude oil price marker at Hardisty, posted a price discount (red line in chart below) to the NYMEX CME WTI Calendar Month Average (CMA) of $(10.75)/bbl as of March 14. The is the narrowest for this discount since late July 2023 (compare to red dashed line). For heavy oil that is shipped down the Trans Mountain Pipeline for export from Westridge, known as Pacific Dilbit Blend (PDB), its discount to CMA (green line) reached $(2.25)/bbl on March 14 (green dashed oval) and its narrowest point since the contract began trading in late Summer 2024.
