The discount of Canadian heavy oil to WTI has widened to $31.70, reaching the highest level since 2018.

The discount of Canadian heavy crude oil compared to US crude oil prices has reached its highest level since 2018. The last time such a large price gap occurred, severe pipeline transportation bottlenecks forced the Alberta provincial government to implement production limits on major local oil producers.According to pricing information from Modern Commodities and General Index, during early trading on November 3, Western Canadian Select crude oil in Alberta traded at a discount of $31.70 per barrel compared to the monthly average futures price of West Texas Intermediate (WTI), marking the highest discount since November 2018. In addition, another major Canadian benchmark crude—Cold Lake crude—saw its discount in the US Gulf Coast rise to an almost eight-year high, reaching $23.10 per barrel.Such significant discounts are typically closely related to regional transportation capacity constraints and inventory build-ups at production sites. These factors directly impact the revenue and profits of Canadian oil producers and may force local authorities to introduce regulatory measures to balance supply, demand, and transportation challenges.