March 5, 2025
Discount on Western Canada Select heavy crude narrows
Published by: Amanda Stephenson
The discount on Western Canada Select (WCS) heavy crude relative to West Texas Intermediate (WTI) narrowed slightly on Wednesday, following the implementation of U.S. tariffs on Canadian and Mexican goods. WCS for April delivery settled at $13.60 per barrel under WTI, compared to $13.70 the previous day.
“The Canadian heavy crude market had a “knee-jerk reaction” to the tariffs immediately following their implementation, said RBN Energy analyst Martin King.”
See the full article here Discount on Western Canada Select heavy crude narrows | BOE Report
U.S. President Donald Trump imposed 25% tariffs on most Canadian goods and 10% on energy products, affecting Canada’s crude exports, 90% of which go to the U.S. Analysts noted a knee-jerk reaction in the Canadian heavy crude market, with concerns that the discount may widen further if tariffs remain. However, Canada’s major oil producers are expected to remain profitable even if the discount expands by $4 to $5.
Meanwhile, global oil prices declined for a fourth consecutive session due to a larger-than-expected U.S. crude inventory build, concerns over OPEC+ plans to increase output, and the impact of U.S. tariffs on multiple countries.
