Rory Johnston: Western Canadian Select spread to WTI hits widest level since November 2023

Rory Johnston: Western Canadian Select spread to WTI hits widest level since November 2023
WCS differentials widen to yearly highs

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.

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.

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