Canadian oil is selling for half price and it's going to get worse

Author: Adam Button | Category: News

Western Canada Select is at a $36.00 discount

Recent numbers from Statistics Canada showed an 11% increase in Canadian oil production in the past year yet pipeline capacity continues to lag.

More supply in landlocked Alberta without any means to get it to market has resulted in a massive discount but it's approaching crisis levels at the moment.

WCS is trading at a $36 discount to WTI. That puts it at $33.47 compared to $69.47 for WTI, a discount of more than 50%.

What's worse is that US refineries are about to go into the fall maintenance period, which could crimp demand for crude by 20%.

If only there were some kind of safe, extremely efficient way to get oil to tidewater.
ForexLive

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose