By Robert Tuttle and Catherine Ngai
At the same time, the lack of a price difference for crude from Canada makes it unprofitable to ship the country’s crude down pipelines to the U.S. Midwest and Gulf Coast. Heavy Western Canadian Select oil is trading at a $14.75 discount to West Texas Intermediate crude in Hardisty, Alberta. That’s compared with about $14.90 a barrel in Cushing, Oklahoma, as of Monday ,according to NE2 Group data.
The situation is a significant change from just a month or two ago when Canadian producers were struggling to get their oil to U.S. refineries as new pipelines, including the Trans Mountain expansion to the Pacific and Enbridge Line 3, met repeated delays. The situation grew so severe in late 2018 that the Alberta government imposed production curtailments that remain in place.