Western Canadian Select's Discount to WTI Widens as Heavy-Oil Demand Softens
The gap between Canadian heavy crude and the U.S. benchmark grew wider at the start of July 2026, with traders pointing to rising Strait of Hormuz crude flows and softer Chinese demand for heavy barrels.
Discount widens at Hardisty
The discount on Western Canadian Select (WCS) crude relative to U.S. benchmark West Texas Intermediate (WTI) widened at the start of July 2026, according to pricing tracked at the Hardisty, Alberta hub — the key delivery point for Canadian heavy oil.
WCS is the benchmark grade for Alberta's oil sands output, and its spread to WTI is closely watched as a gauge of how much less Canadian heavy crude fetches compared with lighter U.S. barrels.
What's behind the move
Two factors were cited for the softer heavy-oil pricing: increased volumes of crude transiting the Strait of Hormuz, and weaker Chinese import demand, which has been a drag on buying interest for heavy grades like WCS.
- Rising Hormuz-linked crude flows add to global heavy and medium crude supply available to refiners.
- Soft Chinese import demand has curbed one of the larger sources of buying interest for heavy crude, pressuring the WCS-WTI spread wider.
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