WCS Discount Widens to $14.75 as Canada's Export Pipelines Run Full

The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures widened on Friday, according to brokerage CalRock. WCS for September delivery in Hardisty, Alberta, settled at $14.75 a barrel below the U.S. benchmark WTI, from $14.70 on Thursday.

Analysts attribute the widening discount to two main factors: increased traffic through the Strait of Hormuz and a decrease in China's import appetite for heavy crude. This has resulted in lower demand globally, particularly during the paving season, which will further widen the differentials.

NoviLabs analyst Martin King predicts that the discount will continue to widen in the coming weeks due to full pipelines in Canada and increased supply from oil sands operations following scheduled maintenance work.