Latest Developments in Canada’s Market Hostage Situation

The expansion of the Trans Mountain pipeline opened new Pacific markets for Canadian oil exports and helped narrow heavy oil differentials. Yet the gap between WTI and WCS pricing has widened significantly in recent weeks, highlighting the ongoing cost of being a price-taker and the importance of broader market diversification. In this issue, we examine the factors, both old and new, driving continued volatility in Canadian heavy oil pricing.