Fires

Wildfires are impacting North American oil fundamentals.

It’s been said every cloud has a silver lining. In Alberta’s case, billowing clouds of black smoke are hiding a golden one.

That’s because the fires are altering North American supply and demand fundamentals in such a way that the ‘differential’ — or the discount — between Alberta’s Western Canadian Select (WCS) and North American benchmark price for West Texas Intermediate (WTI) has narrowed by more than half. 

WCS-WTI differentials

Discounts for Western Canadian Select oil have narrowed by half since the start of the year.

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Shaun Polczer is the Business Reporter for the Western Standard, based in Calgary. Formerly, a business reporter for the Calgary Herald, he has also held senior positions at the Daily Oil Bulletin, and the London Petroleum Economist. 

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