Western Canada Select Discount Hits 2024 Low Amid Venezuelan Barrel Competition

The discount on Western Canada Select (WCS) crude oil to North American benchmark West Texas Intermediate (WTI) futures has widened, reaching a settlement of $15.75 per barrel below WTI in Hardisty, Alberta.

This is the lowest level the discount has consistently traded at since before the Trans Mountain pipeline expansion opened in the spring of 2024, according to Enverus analyst Michael Berger.

The widening discount may be a result of potential increased competition from Venezuelan barrels in the US Gulf Coast over the longer term. However, Berger notes that the discount could begin to narrow as paving season ramps up, as Canadian bitumen is used to produce asphalt concrete.