WCS Discount Narrows as Global Oil Prices Surge
The discount on Western Canada Select (WCS) crude oil to North American benchmark West Texas Intermediate futures narrowed on Thursday, settling at $14.70 a barrel below WTI for September delivery in Hardisty, Alberta.
This marks a slight improvement from the previous day's discount of $14.80 per barrel.
Despite the narrowing discount, WCS remains significantly wider than it was in June, analysts said, attributing this to ongoing weakness in China's import appetite and reduced demand for heavy crude globally.
The strength in global oil prices on Thursday, which rose by more than $3 a barrel, is also worth noting. This increase is attributed to news that an Iranian parliament committee is reviewing a bill that would ban U.S. and Israeli vessels from the Strait of Hormuz and fine violators up to a fifth of the value of their cargo.
In related news, Alberta's daily average production in the first six months of 2026 reached an all-time record of 4.1 million barrels per day, a 3% increase compared to the same period in 2025.