Why Canadian Crude Trades At Such A Steep Discount

Canada’s oil industry faces multiple headwinds on top of an oil bust that has changed the global industry over the past few years. Canadian producers are selling their oil at hefty discounts to WTI, not only because of the heavier sour variety they are pumping out of the oil sands, but also because of limited pipeline capacity that moves the oil out of landlocked Alberta—the heart of the Canadian oil industry. Currently there are three pipelines in the works that will take more Alberta oil either to the U.S. or to the Canadian Pacific…
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