Business · Energy & Commodities · 3 hrs ago
Discount on Canadian heavy oil widens as supply grows
Canadian heavy crude is trading at a deeper discount to the North American oil benchmark, West Texas Intermediate, or WTI.
Western Canadian Select was US$28 a barrel below WTI, a gap about US$15 wider than a year ago.
Canada sends 90 per cent of its oil exports to the U.S., leaving producers exposed to conditions in that market.
Venezuelan crude exports to the U.S. have climbed from 125,000 barrels a day at the start of the year to an average of 600,000 this month, adding competition for Canadian oil.
Full pipelines and rising supply are putting pressure on Canadian prices, although producers are still making strong returns, according to an analyst.
The widening discount strengthens the case for new export routes, including the proposed Pacific Link pipeline to the West Coast, which could help Canada sell more oil to Asia.
Ottawa designated Pacific Link a project of national interest earlier this month, but no further next steps are stated.
The discount on Western Canadian Select heavy crude widened to US$28 a barrel below West Texas Intermediate on Wednesday.
The gap was about US$15 wider than a year earlier, reducing the prices Canadian producers receive relative to the benchmark.
Returning Venezuelan oil and rising Alberta oil sands production are adding to supply pressure.
Canada sends 90 per cent of its oil exports to the United States, while the Trans Mountain pipeline to the West Coast is running at capacity.
The widening discount is strengthening the case for the proposed Pacific Link pipeline to the West Coast.
- Who
- Canadian oil producers are affected by the widening discount.
- What
- The discount on Western Canadian Select heavy crude widened to US$28 a barrel below WTI.
- When
- Wednesday, according to the article published on October 21, 2026.
- Where
- The price gap concerns Canadian crude sold into the North American market, particularly the U.S. market.
- Why
- Rising Alberta oil sands production and returning Venezuelan oil are increasing supply pressure, while pipeline capacity is constrained.
This story does not have two clearly opposing sides.
The discount between Western Canadian Select and WTI reached close to US$43 a barrel.
Completion of the Trans Mountain Expansion Project narrowed the discount to an average of roughly US$13 a barrel.
Venezuelan oil exports to the United States were 125,000 barrels a day at the start of the year.
Ottawa designated the proposed Pacific Link pipeline as a project of national interest.
Venezuelan crude exports to the United States averaged 600,000 barrels a day this month.
The Western Canadian Select discount widened to US$28 a barrel below WTI.
- WCS discount
- US$28 a barrel below WTI on Wednesday
- Year-on-year change
- About US$15 wider than a year earlier
- Canadian exports to the United States
- 90 per cent
- Venezuelan exports to the United States
- 600,000 barrels a day on average this month
- Proposed pipeline
- Pacific Link, designated a project of national interest by Ottawa
What people are saying
much quicker than people thought it would be
You’re out of your mind. It’s just not going to happen
probably wider than what the Canadian producer likes to see, they’re still making a ton of money on the crude oil