Wedoany.com Report on Feb 11th, the discount for Western Canada Select crude oil relative to the North American benchmark West Texas Intermediate futures widened to its highest level since July 2024.

Data from brokerage CalRock shows that the settlement price for March-delivery Western Canada Select crude at Hardisty, Alberta, was $15.45 per barrel lower than the US benchmark West Texas Intermediate, compared to $15.25 on Friday, indicating a continued widening of the WCS discount.

Since early January, the discount for Canadian heavy crude has increased by over $2, primarily due to the US announcement of targets to boost Venezuelan oil production. Investors are closely watching the potential for growth in Venezuela's oil output, which could compete with Canadian heavy oil on the US Gulf Coast in the future.

According to sources close to operations who spoke to Reuters, Venezuela's state-owned oil company PDVSA has reversed most of its production cuts at its own fields and joint ventures in the country's main crude-producing region, the Orinoco Belt, bringing total production close to 1 million barrels per day.

On Monday, oil prices settled up over 1% after the US Department of Transportation issued a recommendation advising US-flagged vessels to stay as far away as possible from Iranian territory when transiting the Strait of Hormuz and the Gulf of Oman. This factor also indirectly affected market expectations for crude oil supply, but the trend of a widening discount for Western Canada Select remains significant.