BTE - Canadian Heavy Oil Discount Falls Into The Single Digits - Crude Quality Matters
Welcome to the single-digit edition of Oil Markets Daily!
Western Canadian Select (WCS), or Canadian heavy oil prices, is trading at a discount of $7.50/bbl on the prompt future.
Source: BMO
That's staggering considering that just three months earlier, Canadian heavy oil producers were getting a $50/bbl discount on the very same oil they were selling. Much of the improvement in Canadian heavy oil prices are thanks to Alberta's mandated production cut. But differentials have now narrowed even more materially than analysts expected.
Coming into 2019, analysts expected WCS-WTI differentials to narrow to $18 to