September 25, 2024
WTI-WCS Diffs In A ‘Pretty Happy Place’ As The TMX Effect Takes Hold
By Paul Wells
The spread between WTI and WCS has remained steady in the $13-$14 range, and this differential is expected to stay stable, according to Martin King from RBN Energy. The expansion of the Trans Mountain pipeline (TMX) is a key factor contributing to this stability. King noted that excess pipeline capacity out of Western Canada is helping the price spreads, especially for October and November. However, refinery maintenance in the U.S. Midwest may have a slight negative impact.
Randy Ollenberger from BMO Capital Markets agreed, stating that TMX is tightening the spread as anticipated, though not as much as initially predicted due to refinery maintenance. He expects the spread to decrease further, potentially reaching the $10-$11 range in the coming months and dipping below $10 during the summer asphalt season.
Read the full article here: DOB Energy - by geoLOGIC
