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Canadian heavy crude values at the Texas Gulf coast were pressured by additional Venezuelan crude volumes in the market making their way to US Gulf coast refineries. The Argus March Western Canadian Select (WCS) Houston assessment widened to average an $8.42/bl discount to CMA Nymex, its weakest level since January 2024 trade. The Argus WCS assessments in US markets include the more active Cold Lake grade, which trades at parity there. Demand for Canadian crude remained though as the heavy sours may have been more economical than Venezuelan for US Gulf coast refiners, especially for those whose refineries are connected to pipelines that deliver Canadian crude. Venezuela’s Merey on a delivered basis to the US Gulf coast averaged a roughly $2.30/bl premium relative to Argus’ WCS Houston assessment.
March WTI Houston averaged its highest premium to the Nymex-quality WTI benchmark in five trade months, supported by exports and pipeline maintenance impacting west Texas flows to the US Gulf coast. WTI Houston averaged a $1.12/bl premium to Domestic Sweet for March deliveries. Asia-Pacific buyers showed interest, including South Korean refiner who bought 700,000 bl of medium sour Mars crude and 1.3mn bl of light sweet WTI for May delivery. Maintenance is planned for the 1.5mn b/d ExxonMobil-operated Wink-to-Webster oil pipeline in Texas in March. Decreased takeaway capacity as a result of the pipeline maintenance also pushed WTI Houston and Midland to average their widest locational spread since trade for December deliveries in 2024.
The US light sweet crude benchmark in Cushing, Oklahoma, briefly slipped into contango—where prompt prices are at a discount to forward ones—on consecutive days for the first time since February 2024. During the last four days of the March US pipeline trade month the prompt Domestic Sweet (DSW) price was at a roughly 5-20¢/bl discount to April, as reflected by the Argus WTI Formula Basis between 20-25 February. US crude production reached 13.6mn b/d in early October last year and has averaged over 13.7mn b/d since, Energy Information Administration (EIA) data shows. By month’s end, Cushing crude stocks were at the highest level since August 2024 and total US commercial inventories since May 2025. On average, prompt the Domestic Sweet price averaged 13¢/bl over the second month from 20¢/bl in January.
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Heavy sour benchmark Western Canadian Select (WCS) at Hardisty, Alberta, rose by $2.40/bl to a $12.15/bl discount to CMA Nymex in the month to 3 March. Demand at the US Gulf coast has been strong off the back of disruption to Mideast Gulf supplies, while strong crack spreads for heavy crude in the US midcontinent has supported WCS demand in Padd 2.
Heavy sour waterborne Cold Lake out of the 890,000 b/d Trans Mountain system gained 15¢/bl to a $5.00/bl discount to CMA Nymex on an fob Vancouver basis on stronger bidding interest in Asia-Pacific and the US west coast, although most of this interest was on a delivered basis given the high and rising freight costs of shipping out of Vancouver.
Canadian condensate discounts to CMA Nymex widened by $2.20/bl to $3.10/bl, the widest in over six months as condensate demand eases during a transition to warmer weather. In warmer months bitumen thins naturally, and producers require less condensate as diluent to satisfy pipeline viscosity rules.
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Argentina's Medanito producers have tried to diversify their exports, as demand in the US west coast diminishes and ahead of the startup of a new oil pipeline in 2027, which will allow the loading of VLCC vessels.
Multiple Medanito cargoes have headed to Asia-Pacific buyers since late last year, including regular exports to Australia at least since November.
Medanito is currently assessed at a $3.75/bl discount to Ice Brent.
Brazilian grades have been pressured by multi-year high freight levels since the end of 2025, which have contributed to wider fob discounts.
Since the start of the US-Iran war, freight levels have spiked further and producers have pushed for offers at higher levels considering crude supply disruptions of Mideast Gulf grades.
Tupi is currently assessed at a $7/bl discount to North Sea Dated.
