Discount on Western Canada Select Widens

 The discount on Western Canada Select to North American benchmark West Texas Intermediate futures widened on Thursday.

WCS for December delivery in Hardisty, Alberta, settled at $11.70 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, compared to Wednesday’s close of $11.50.

* The differential has been trading in a tight band, ranging between $10.25 and $11.70 under WTI, since September 1.

* Analysts say the WCS discount has been well-supported in recent months, in part due to strong international buying of Canadian crude off the Pacific coast via the Trans Mountain pipeline expansion, which opened up additional oil export capacity for the country when it opened in 2024.

* However, TD Cowen said in a report this week it is forecasting Canadian crude oil export pipeline capacity to become constrained again in the third quarter of 2028. TD Cowen said the question of when Canada might once again face constraints in oil takeaway capacity will have implications for the competitiveness of Canadian oil prices relative to major global benchmarks.

* Global oil prices held largely steady on Thursday after declining around 4% in the previous session as investors weighed concerns about global oversupply, with looming sanctions against Russia’s Lukoil.

(Reporting by Amanda Stephenson in Calgary; Editing by Alan Barona)