Canadian oil plummets to a year-low: raw material surplus and Trump's tariffs crash prices – Bloomberg

Prices for Canadian crude oil have fallen to their lowest level relative to the American benchmark since March 2025. This drop is caused by increased production in Alberta amid a global surplus of raw materials and slowing global demand. This is reported by Bloomberg, writes UNN.

DetailsOn Tuesday, the price of Western Canadian Select (WCS) oil, traded in Alberta, fell by $13 below the price of West Texas Intermediate (WTI). This is the largest discount since March, when the Trump administration briefly imposed a 10% tariff on Canadian oil. Even on the US Gulf Coast, Canadian heavy oil is trading at a $4.55 discount to WTI, the largest difference since January.

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Production growthFollowing seasonal maintenance, production in Alberta has resumed, leading to a return to rationing of the largest export pipeline system.

The increase in Canadian production puts additional pressure on the global market, which is experiencing its first major surplus of raw materials since 2020. US oil futures are already trading below $60 a barrel.

Policy impact The slowdown in demand is linked to President Donald Trump’s tariffs, which are weighing on the global economy, as well as a downturn in the real estate market and low consumer spending in China.

Trans Mountain Corp. CEO Mark Maki also said that volumes on the expanded Trans Mountain pipeline are expected to decline due to the accumulation of large volumes of oil stored on tankers worldwide.

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