CRISIS: Western Canadian Select Crude Price Collapses To Record Low

The price discount compared to West Texas Intermediate has reached a whopping $43 a barrel.

The Crisis in the Canadian oil industry continues to worsen.

Western Canadian Select is trading at just $13.46 US a barrel.

That’s the lowest price on record, according to data compiled by Bloomberg.

The previous low was in 2016, however, that came as oil prices around the world were falling due to over-supply.

What makes this price collapse so dramatic, is the massive gap that has opened up between the price of benchmark Canadian oil, and oil produced in the US.

In fact, it’s not just a gap, it’s a chasm.

The crisis is causing severe desperation in the industry, and things are so bad that some oil companies are now calling for the Alberta government to step in and restrict production to boost prices.

When private sector companies in Alberta are asking a socialist government to impose restrictions on production, you know things are going horribly.

This is an emergency, and only action by the federal government can alleviate it. Considering that oil is such an important resource for Canada, and considering the size of the Canadian oil industry, the government is well within their rights to take decisive action to get pipelines approved and underway.

But Trudeau is doing the opposite. He’s cancelled badly-needed pipelines, and his regulations are making new pipelines almost impossible.

Trudeau is now acting in direct opposition to the interests of the Canadian oil industry, and against the interests of Canada as a whole. So long as that continues, the crisis will worsen.

Spencer Fernando

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CliveBrian MELLORshawn harrisalan skelhorneDel Recent comment authors
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Del

I live in BC, and I would support oil companies if they reduced the flow through the KM line by 50% . There is no point in selling anything at a loss. This would drastically raise the prices of everything in BC and would contribute to possibly violent public backlash against Horgan, Weaver and the Soros pipeline haters. I can live for a few months if prices for everything doubled, but could Horgan, Weaver or the enviro-fascists?

alan skelhorne
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simply put, trudeau, do what we ask, if you refuse, no payment for quebec this year. do you want too the french hit the roof.

shawn harris
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shawn harris

This low point in pricing for Western Canadian Select crude oil, is the all but predictable result of socialist ideology driving our national economy, instead of allowing the market to set the true price. We have a far left socialist PM, who champions the belief that having a overtaxed and extremely regulated, phased out oil industry is far better for Canada and Canadians, than having a highly successful oil industry. Trudeau also firmly believes that the problems of the oil industry, for which he has only made them worse, will, somehow lead to a greener and more prosperous economy and… Read more »

Brian MELLOR
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Brian MELLOR

Canada must opt out of this agreement.

Clive
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Clive

Time for the Chinese Canadian dual citizens to vote in a BC government that will encourage Alberta to ship oil to China and Asia. I don’t think the American puppet “environmentalists” will fare very well if average working Canadians support the Chinese trade machine. Wherever the Chinese trade machine establishes itself is usually “win/win” for the locals, from Africa to the Middle East to Asia and Europe. The Chinese are by nature conservative rather than liberal and a lot less “tribal” than you might think.