chriskanaan

WCS differential seems like an attractive play in the short term

NYMEX:IWG1!   None



1) Midwest (PADD 2) refineries are still operating in the low 80% utilization.
2) Differential increased to ship more crude by rail, which had dropped to a recent low after initial AB cuts.
3) Jason Kenney's new UPC government is looking to extend the Albertan oil production cuts into 2020 as Line 3 looks delayed.
4) With the rise of U.S. ultralight crude, refineries must blend product with a heavier, lower gravity , crude like WCS. With the collapse of Venezuelan exports to the United States and the slowdown of Mayan imports, plus OPEC cuts, there is little alternative to WCS as a blendstock crude for Permian light.
5) Transmountain pipeline decision on Tuesday may have a nominal impact .

I prefer to play the differential through CCX (Canadian crude ETF ).