WCS Discount Widens Amid Tenuous Ceasefire in Middle East

The discount on Western Canada Select (WCS) crude oil to North American benchmark West Texas Intermediate (WTI) futures has widened, settling at $15.55 a barrel below WTI for May delivery in Hardisty, Alberta.

This is compared to a $14.90 discount on Wednesday, according to brokerage CalRock.

Wood Mackenzie analyst Dylan White attributes the recent widening of the differential to planned oil releases from the U.S. strategic reserve throughout April and May, aimed at addressing Iran-related supply pressures.

White notes that there is room for this widening to continue, but acknowledges the market's volatility due to the tenuous ceasefire in the Middle East.