WCS Discount Narrows as Global Oil Prices Plunge Below $100 Barrel
The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures narrowed on Wednesday. WCS for May delivery in Hardisty, Alberta, settled at $14.90 a barrel below the U.S. benchmark WTI.
This was compared to a discount of $16.65 on Tuesday, making it narrower than its steepest discount since early 2024. The narrowing differential comes after global oil prices plummeted, falling below $100 a barrel on Wednesday due to hope of the Strait of Hormuz reopening following a two-week ceasefire between Iran and the U.S.
The price of WTI had soared earlier in the week due to tensions surrounding the Iran war. However, the recent development has led to a reversal in oil prices, causing the WCS differential to narrow.