Free Trial

Canadian Crude Prices at Vancouver Strengthen upon TMX Start

OIL

Canadian heavy crude discounts to WTI have narrowed in Vancouver following the startup of the expanded 890k b/d Trans Mountain pipeline, traders told Bloomberg.

  • The discount has shrunk from $7.50/b to around $6/b for deals that were struck in mid-May, Bloomberg said.
  • However, the discount may have since widened to around $6.5/b as the West Canadian Select discount at Hardisty widened to its largest since mid-April on June 3.
  • Around 75% of TMX’s capacity will be utilised in June, with 22 tankers due to load during the month. This is almost all the contract volume capacity, plus some spot demand.
100 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Canadian heavy crude discounts to WTI have narrowed in Vancouver following the startup of the expanded 890k b/d Trans Mountain pipeline, traders told Bloomberg.

  • The discount has shrunk from $7.50/b to around $6/b for deals that were struck in mid-May, Bloomberg said.
  • However, the discount may have since widened to around $6.5/b as the West Canadian Select discount at Hardisty widened to its largest since mid-April on June 3.
  • Around 75% of TMX’s capacity will be utilised in June, with 22 tankers due to load during the month. This is almost all the contract volume capacity, plus some spot demand.