After reaching an all-time low, Canada's heavy oil indicators went up again on Friday to narrow the US discount on crude oil.
Western Canadian Select reached $ 38.12 on Friday afternoon, up 15.6% from Thursday's close. This week, Alberta Premier announced Rachel Notley's production cuts and is expected to enter into force for the removal of rock bottom prices in January. Faced with the bottleneck and rising inventories in the pipeline, Alberta's oil prices have fallen in recent months, and WCS set a record lower than US $ 14 in November.
This week's rally resulted in a significant reduction in the price difference between the WCS and the West Texas intermediate US reference. WCS now sells $ 15 a barrel discount for WTI; In October, the price gap rose to $ 50. Bloomberg data was the biggest discount in 2008. An important measure of the oil patch, the differential is now slightly better than the historical average of $ 17.37.
Friday's rally also places WCS in the region with long-range forecasts. Joan Pinto, partner and energy expert at CIBC Capital Markets, this week brought WCS to an average of $ 40.50 in 2019 and $ 41.75 the following year.
Global oil prices rose on Friday after the release of "OPEC-plus" was larger than expected for crude oil production. (Ise OPEC-plus, refers to other producers who have decided on an earlier procurement bill, such as the Organization of the Petroleum Exporting Countries and Russia.) He rose to # 39; Early Friday afternoon, $ 63.06.