Western Canada’s benchmark heavy crude differential has tightened since early April, but observers say this could widen back out to reflect the cost of moving crude by rail and as heavy crude production increases. WCS has been assessed at a $15-$18/b discount to the NYMEX light sweet crude futures calendar-month average (WTI CMA) since April 3, S&P Global Platts data shows. That is in from a discount of $30.55/b in early February, when WCS was depressed by a lack of pipeline takeaway capacity following an unplanned Keystone Pipeline outage in November. Price swings going forward are likely to hinge on whether producers and rail companies are able to sign contracts for dedicated crude unit trains, traders and analysts say. “We expect volatility between unit train and pipeline economics,” said Kevin Birn, a senior analyst with IHS Markit. “It’s going to be very hard to predict pricing until it makes […]