Discount on Canadian WCS oil rises to $26.40 per barrel — OilPrice

In Canada, the discount on Western Canadian Select (WCS), Alberta’s benchmark heavy crude grade, rose to $26.40 per barrel versus U.S. WTI during trading on Thursday. A day earlier, it stood at $25.55, while in mid-September it was about $10. OilPrice reports that the current gap is more than $15 per barrel wider than a year ago.

Global prices are rising

On Friday, prices for major global crude grades rose. December Brent futures increased by 3.33% to $109.50 per barrel, while November WTI gained 3.41% to $101.30. WTI exceeded $100 per barrel for the first time in a month.

WCS traditionally costs less than WTI because Canadian crude is heavier and contains more sulfur, meaning it requires more expensive refining. Distance also affects the price: the hub in Hardisty is located about 4,000 kilometers from major refining markets on the U.S. Gulf Coast.

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Demand shifts toward lighter grades

ATB Capital Markets Managing Director Patrick O’Rourke told the Financial Post that the current deterioration in the price differential is not primarily related to export infrastructure constraints. OilPrice links rising diesel prices to damage to Russian refining capacity caused by Ukrainian drone and missile strikes. According to the publication’s assessment, this is prompting refiners to favor lighter, lower-sulfur grades, which yield more diesel per barrel.

Canadian crude prices are also pressured by high sea freight rates to Asia and competition from Venezuelan heavy crude in the U.S. Gulf Coast market. The expanded Trans Mountain pipeline, with a capacity of 890,000 barrels per day, reached full utilization for the first time in June 2026. TD Cowen forecasts that substantial WCS discounts may persist into 2027 due to pipeline capacity constraints and imports of competing heavy grades into the United States.