Insight
Is WCS crude experiencing differential déjà vu?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Wide discounts for Western Canadian heavy crude prices to US benchmark WTI are roaring back with ferocity after the specter of tightening egress capacity resurfaces despite recent long-haul capacity expansions. Supply growth is once again testing the upper limits of outbound pipeline capacity to the US resulting in >US$20/bbl discounts to WTI for the third month in a row in July, something that hasn’t occurred since 2018. We explore what’s next for WCS discounts and WSCB crude egress in addition to how we expect producers to respond to widening WCS discounts this cycle compared to previous.
Table of contents
- Executive summary
- What is driving recent WCS differential movements?
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How will the industry react?
- Hedges
- Crude-by-rail
- Production growth
Tables and charts
This report includes the following images and tables:
- WCSB long-haul pipeline utilisation
- WTI-WCS differential
What's included
This report contains:
