WCS discount widens to US$27 a barrel, widest since 2023

Western Canadian Select, Alberta’s benchmark heavy crude, settled at a discount of US$27 a barrel to West Texas Intermediate for November delivery at Hardisty on Friday, Oct. 16, the widest gap since 2023, according to brokerage CalRock figures reported by Reuters via the BOE Report.

The discount was US$26.40 on Thursday and US$25.50 on Tuesday, when it was already the widest in three years. It is now more than US$15 wider than at the same point last year, Reuters reported. We reported the earlier move on Oct. 15.

The benchmark WTI itself is high. It settled at US$101.41 a barrel on Friday and was trading near US$100.88 early on Monday, Oct. 19, according to an EnergyNow market report. Brent touched US$110 on Friday for the first time since May amid Middle East tensions, Reuters said.

The wider discount means Alberta producers are capturing less of that rally than the headline price suggests. A heavier discount lowers what oilsands operators receive for each barrel, which in turn can reduce the royalties and corporate taxes that flow to the province.

Analysts at TD Cowen pointed to growing Venezuelan imports into the U.S. Gulf Coast, refinery disruptions, rising oilsands production and tighter pipeline utilization as reasons for the widening, Reuters reported. TD Cowen called it a “surprising negative” that underscores the importance of proposed new pipelines for Canada’s export capacity.

On Oct. 13, Reuters reported that high freight rates had sharply cut demand for crude exports in the Americas, and that prices for similar heavy grades from Venezuela, Ecuador and Colombia had eased in recent weeks.

The widening adds pressure to the debate over new export capacity out of Alberta. Ottawa’s consultation on the proposed West Coast line has drawn objections from Indigenous leaders, as we reported earlier this month. The province also leans on resource revenue, which helped produce a $2.2-billion surplus for 2025-26.

For motorists, the picture is different. A wider discount on Alberta heavy crude does not by itself lower pump prices, which track global benchmarks and refined-product markets. Statistics Canada said last week that gasoline prices were up sharply from a year ago, as our inflation report detailed.

This story is developing and will be updated if the discount moves further.

If you find reporting like this useful, consider supporting Canada News Media, an independent Canadian newsroom with no corporate parent.