WCS crude discounts widen on major refinery works, reduced pipeline capacity
Western Canadian Select crude differentials to West Texas Intermediate remained at over two-year lows on Sept. 21, marking their seventh consecutive day of declines, amid major planned refinery work, maxed-out pipeline capacity, and rising production, according to comments from industry officials and Platts assessments from S&P Global Energy. Platts assessed WCS at Hardisty, Alberta, down ...
Western Canadian Select (WCS) crude discounts widened to multi-year lows as of September 21, 2023, due to major refinery works, saturated pipeline capacity, and rising production, according to industry officials and Platts assessments. WCS at Hardisty, Alberta, dropped 35 cents per barrel day-over-day to a $21.35 per barrel discount to West Texas Intermediate (WTI), marking the widest differential since December 2023.
WCS differentials in Cushing, Oklahoma, and Nederland, Texas, weakened further, falling by an additional $1.25 per barrel each from their previous assessments.
Greg Stringham, a former vice president of markets with the Canadian Association of Petroleum Producers, explained that the fall refinery maintenance season is in effect, with multiple works planned in both the West and East. Joliet refinery in Illinois, with a capacity of 267,000 barrels per day, and other refineries in Canada, such as those in Sarnia, Saint John, and Edmonton, are expected to increase outages, reaching approximately 750,000 barrels per day in the week ending September 25.
The Trans Mountain Pipeline, which previously acted as a buffer to keep WCS/WTI differentials in a narrow range of $12/b to $14/b, is now operating at full capacity due to ongoing maintenance works in the US Midwest and US Gulf Coast. The 890,000 barrels per day system comprises the legacy Trans Mountain line and the 590,000 barrels per day Trans Mountain Expansion, transporting heavy and light barrels from Edmonton, Alberta, to the Westridge Marine Terminal in coastal British Columbia.
Meanwhile, Venezuelan heavy crude exports to the US Gulf Coast have increased significantly, with August exports reaching 12.2 million barrels, up from 1.5 million barrels in August 2025. This increase has also resulted in widening discounts for other heavy crudes, with Venezuela's Merey 16 assessed at a $14.40 per barrel discount to WTI on September 21, down from a $9.19 per barrel discount on September 1.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
