• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 42 mins TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 3 hours WE have a suicidal player in the energy industry
  • 8 hours Washington doctor removed from his post, over covid
  • 3 mins Real Death Toll In CCP Virus May Be 12X Official Toll
  • 6 hours Shale Legs
  • 28 mins How to Create a Pandemic
  • 3 hours The Most Annoying Person You Have Encountered During Lockdown
  • 8 hours Which producers will shut in first?
  • 6 mins Saudi Aramco struggling to raise money for this year's dividend of $75 billion. Now trying to sell their pipelines for $10 billion.
  • 6 hours KSA taking Missiles from ?
  • 12 hours Trump eyes massive expulsion of suspected Chinese spies
  • 15 hours Did Trump start the oil price war?
Alt Text

The Inevitable Outcome Of The Oil Price War

Russia, with Saudi Arabia either…

Alt Text

Oil Prices Retreat After Massive Rally

After a panic-driven bloodbath on…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Canada’s Oil Trades At Smallest Discount To WTI In A Decade

Canada’s benchmark heavy oil price has recovered since the oil-rich Alberta province mandated in December an oil production cut of more than 300,000 bpd, with the discount of Canadian oil to the U.S. benchmark WTI narrowing to its lowest in a decade.

Last Friday, the discount of Western Canadian Select (WCS)—the benchmark price of oil from Canada’s oil sands—to WTI narrowed to just US$7 a barrel, the smallest discount since March 2009, according to data from RBC Capital Markets quoted by The Wall Street Journal—a sign that the oil production curtailment has started to work in lifting the price of Canadian oil.

Source: OilPrice Data

As Canadian oil production was growing last year, takeaway capacity constraints and maintenance at U.S. refineries in the fall of 2018 drove down the price of WCS to as low as US$14 a barrel in October and November, with its discount to WTI at around US$50 a barrel.

In early December, the Alberta government moved in to shore up the price of Canadian heavy oil and in the most drastic measure yet, the province of Alberta mandated an oil production cut of 325,000 bpd for three months starting January 2019. The glut and the resulting low oil prices cost Canadians US$60 million (C$80 million) a day, Premier Rachel Notley said in early December.

Early last week—and a week into Alberta’s oil cuts—Canadian crude oil hit the highest price level in more than a year on growth in crude-by-rail shipments. As a result of the increase in oil-by-rail shipments, Western Canadian Select traded at a discount of only US$10.50 to WTI on January 7.  

“The forced cuts caught us all by surprise. Most people, including myself, saw no hope for Canadian differentials for another year or so,” Scott Shelton, a broker at ICAP PLC, told the Journal on Thursday.  

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage






Leave a comment
  • Mike Kom on January 18 2019 said:
    "“The forced cuts caught us all by surprise. Most people, including myself, saw no hope for Canadian differentials for another year or so,” Scott Shelton, a broker at ICAP PLC, told the Journal on Thursday"

    Ummmm, Scott....how could you NOT have known? It was only talked about for weeks beforehand it was implemented. I think you're lying to us. That, or you're some kind of incompetent.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News