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Pipeline bottlenecks are typically to blame any time Canadian oil producers have a hard time getting their product to market. But that’s not the reason this time around. (Richard Carson/Reuters) A barrel of the North American oil benchmark is changing hands for about $90 US a barrel right now, but the heavy crude that comes from Canada’s oilsands is fetching $30 less because of a perfect storm of imbalances between supply and demand. The oil blend known as West Texas Intermediate (WTI) was going for about $87 a barrel on Thursday. That’s down from recent highs, but still far more than the price offered for every barrel of crude oil from Canada’s oilsands, a thick, tarry, and "sour" type of crude that goes by the name Western Canada Select (WCS). WCS was fetching a little over $53 US a barrel on Thursday, the cheapest level it’s been since Russian President Vladimir Putin invaded Ukraine, which pushed oil prices to their highest level in years on fears of a wider war, and sent countries scrambling to replace sanctioned Russian crude. It’s also more than $34 per barrel cheaper than WTI, which is the widest gap between the two blends since […]
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