ENERGY MARKETS
Crude Oil Prices
Natural Gas Prices
Real-Time Charts
Upgrades & Downgrades
Data Downloads


NEWSLETTER SIGN-UP
Sign-up for the latest oil sands news, site updates, energy statistics and what's moving energy markets, delivered to your inbox every week-end:

WE RESPECT YOUR PRIVACY
You can opt out anytime by clicking "UNSUBSCRIBE" at the bottom of the newsletter.
Western Canadian Select hits fresh 6 year low

Western Canadian Select hits fresh 6 year low

Western Canadian Select (WCS) hit a fresh 6 year low on Tuesday, falling below US$30 per barrel for the first time since March 2009. The heavy oil discount (the difference between West Texas Intermediate and WCS) remains stable at about $13.50 per barrel.

Although the differential is relatively low in absolute dollar terms, Canadian heavy producers could theoretically get 40% more revenue if their production was sold to market at West Texas prices. This makes a big difference for Canadian heavy oil producers such as Canadian Natural Resources and Cenovus, which sell much of their oil production as non-upgraded WCS.  

While West Texas is down 58% from the highs of June 2014, WCS is down 63% for the same period. However, in Canadian dollar terms, WCS is down a more comparable 56% since June of last year. The lower Canadian dollar does provide a bit of a tailwind for Canadian oil producers.

WCS has averaged US$33.30 for the month of March to-date, at par with the January 2015 average of $33.25. The first fiscal quarter ends March 31st, which leaves 7 trading days before the end of the quarter. Note that WCS averaged approximately $60 per barrel in Q4 of last year. Barring any catastrophic event in the next 7 days, WCS will likely average $35 per barrel for Q1 of this year, representing a 40% drop in revenue for Canadian heavy oil producers. Release of Q1-2015 results for Canadian energy companies will begin rolling out at the end of April and through May.

Gearing up for first quarter earnings in the energy patch

Gearing up for first quarter earnings in the energy patch

8 things President Obama should know about Canada and the Alberta oil sands

8 things President Obama should know about Canada and the Alberta oil sands

0