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.