WCS Discount Widen to $14.80 Amid Global Demand Weakness

The discount on Western Canada Select (WCS) crude oil to North American benchmark West Texas Intermediate futures widened on Tuesday. WCS for September delivery in Hardisty, Alberta settled at $14.80 a barrel below WTI, compared to $14.25 on Friday.

This significant increase in the discount is attributed to ongoing weakness in China's import appetite and increased crude supply following maintenance work at oil sands areas. Analysts point out that this shift has hurt demand for heavy crude globally.

The price of WCS remains lower than it was in June, which saw a narrower discount. The Strait of Hormuz, which is a key transportation route for oil exports, experienced increased traffic in July. However, the current market dynamics have reversed this trend.