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Rory Johnston reports that Western Canadian Select (WCS) crude differentials at Hardisty, Alberta, have widened to more than $25 per barrel under West Texas Intermediate (WTI) and to over $16 per barrel in Houston. These are the widest differentials since November 2023 and January 2023, respectively.
According to Johnston, the current spread is being driven by both quality-related factors affecting the crude market.
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Johnston previously reported that diesel prices have been driven higher by record crack spreads, putting U.S. diesel on par with Brent crude levels (here). He also observed a widening gap in retail diesel prices between the U.S. and China (here). These recent trends in refined fuel markets provide additional context for evolving price differentials in Canadian crude.