Discount on Western Canada Select heavy crude narrows
May 5, 2025
By: Amanda Stephenson
The discount on Western Canada Select (WCS) heavy crude relative to West Texas Intermediate (WTI) narrowed to $9.15 per barrel on Friday, continuing a trend of historically tight spreads this spring. Analysts attribute the strength to increased export capacity from the Trans Mountain pipeline expansion and tighter U.S. sanctions on heavy crude producers like Venezuela. With demand for Canadian barrels rising and spare pipeline capacity still available, experts expect the $9–$10 range to hold steady.
“This kind of $9 to $10 range is very supportable,” said RBN Energy analyst Martin King. “There’s not [an easy substitution] for Canadian barrels in the Midwest and parts of the Gulf Coast, and we still have spare pipeline capacity for all the export pipes from western Canada.”
Meanwhile, global oil prices dipped over 1% amid caution ahead of the upcoming OPEC+ output decision.
Read the full article here Discount on Western Canada Select heavy crude narrows | BOE Report
