Commodities
WCS Discount Widens Amid US Oil Releases and Middle East Uncertainty
The discount on Western Canada Select (WCS) crude oil to North American benchmark West Texas Intermediate (WTI) futures widened on Thursday.
According to brokerage CalRock, WCS for May delivery in Hardisty, Alberta, settled at $15.55 a barrel below the U.S. benchmark WTI, compared with $14.90 on Wednesday.
The widening of the differential comes after planned oil releases from the U.S. strategic reserve throughout April and May, aimed at addressing Iran-related supply pressures, as analyzed by Wood Mackenzie's Dylan White.
White notes that there is room for further widening, but acknowledges the market's uncertainty due to the fragile Middle East ceasefire.