A recent article published in the Calgary Herald suggests that Canadian heavy crude production is on the rise in the second half of this year.
Increased pipeline capacity has led to the most crude being processed at this time of year since 1992, and is resulting in more Alberta crude oil making its way to refineries in the U.S. Midwest. Data from the National Energy Board indicates that output for the Canadian oilsands will grow 8.3% this year, as projects such as Imperial Oil’s Kearl expansion and Husky’s Sunrise operation boost their output.
Assuming growing supply in the latter half of the year, Jackie Forrest of ARC Financial Corp says she expects the price discount between Western Canadian Select (WCS) and West Texas Intermediate (WTI) will widen to a level that covers both transportation costs and the difference in quality.
Click here to read the full Herald article.