June 4, 2025
Discount on Western Canada Select heavy crude widens; some oil sands production restarts after wildfire disruptions
By: Amanda Stephenson
The price discount on Western Canada Select (WCS) crude relative to West Texas Intermediate (WTI) futures widened slightly on Wednesday, settling at $9.10 per barrel under WTI for July delivery. This shift follows the restart of production at oil sands facilities in Alberta that had been temporarily shut down earlier in the week due to nearby wildfire threats. Notably, Canadian Natural Resources resumed operations at its Jackfish 1 site, aiming to restore full capacity by Friday, while Cenovus Energy is expected to bring its Christina Lake site back online soon as fire risks subside. Analysts, including RBN Energy’s Martin King, noted that the market appears to be pricing in a quick recovery, limiting the impact on WCS values. Meanwhile, global oil prices dipped over 1% amid growing inventories and demand concerns.
