The benchmark price of Canada’s oil sands is expected to strengthen next year amid lower supplies of Mexican heavy crude oil to the United States, BMO Capital Markets said in a report carried by Bloomberg . Western Canadian Select (WCS) —the benchmark price of oil from Canada’s oil sands delivered at Hardisty, Alberta—has seen its discount to WTI Crude at around US$10 a barrel in recent months, even after Canadian oil producers restored most of the production they had curtailed in April and May, when oil demand and oil prices were crashing in the pandemic. According to BMO Capital Markets, the discount of WCS to WTI could narrow to between US$5 and US$7 because of expected significant cuts of Mexican heavy crude flows to the United States. With Mexican heavy crude supply low and Venezuela’s heavy crude banned for U.S. refiners because of the sanctions on Nicolas Maduro’s regime, […]