ATHOF - Buy Canadian Heavy Oil Producers As The WCS-WTI Discount Narrows
Welcome to the buy Canadian heavy oil edition of Oil Markets Daily!
Thesis
Canadian heavy oil producer equities have diverged greatly from the recent improvement in Western Canadian Select prices or WCS. The discount between WCS and WTI continues to narrow allowing knowledgeable investors to take advantage of the complacency in Canada.
Investors allocating capital to heavy oil producers in Canada will also benefit from a long tailwind of lower heavy oil production from Mexico and Venezuela, two key suppliers for US. This will provide more tailwind for higher Canadian heavy oil demand in the