Canadian Oil Prices Collapse Even Amid Pipeline Abundance
- US refinery shutdowns, shipping problems blamed for slide
- Prices plunge to biggest discount to futures since 2018
The BP refinery in Whiting, Indiana.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
Canadian heavy crude prices plunged to their biggest discount to futures since 2018 and, this time, the collapse has little to do with a shortage of pipelines.
Heavy Western Canadian Select’s discount to West Texas Intermediate widened $1.50 to $32.50 a barrel at Hardisty, Alberta, on Wednesday, the widest since November 2018, data compiled by Bloomberg show. That was just before massive pipeline bottlenecks prompted Alberta’s government to impose production caps on local oil companies.