Discount has been the least volatile in more than two years
The differential had moved by an average of as much as US$1 a day in the past as a dearth of pipeline space forced some Canadian producers to sell their oil at steep discounts. But since starting operation in May, the expansion of Trans Mountain — which involved adding a new line alongside an older conduit — has provided oil companies with a surplus of pipeline space and access to new markets in Asia and on the U.S. West Coast.
There are signs the stability for Canadian crude prices may last. The surplus of pipeline space means the expanded Trans Mountain won’t be full until 2028, Mark Maki, chief executive of the government-owned Trans Mountain Corp., told a House of Commons committee recently.