Canadian heavy crude has shown signs of recovery after hitting its lowest point in eight years. The Western Canadian Select (WCS) discount to US futures in Alberta has narrowed to $26.50 a barrel as of Wednesday, down from nearly $32 on November 3. This improvement comes as tanker rates have eased and oil prices have declined.
The discount reached $25 a barrel on Monday, marking the weakest level since early October. The shift is attributed to a roughly 16% drop in WTI futures this month, driven by optimism about a potential end to the US war in Iran.
According to data compiled by Bloomberg from Modern Commodities and General Index prices, the recent strengthening of Canadian heavy crude reflects broader market dynamics. The surge in tanker rates that previously weighed on prices has subsided, contributing to the improved outlook for WCS.