Premiums for Canadian light crude grades have surged to record levels as US west coast refiners look to neighbouring Canada for supplies amid tightening global availability of medium sour crude, Argus reported on Tuesday.
At Edmonton, Alberta, medium sweet Syncrude rose to USD 19.85-20.00 per barrel over the May CMA (calendar month average) on NYMEX, surpassing its previous record, while Mixed Sweet also reached a record high at USD 12.00-12.65 per barrel.
Light Sour Blend at Cromer, Manitoba, climbed to USD 7.00-9.25 per barrel, exceeding the record high reached on April 1, and Canadian condensate at Fort Saskatchewan, Alberta, was reported to be trading at a premium of around USD 10.80 per barrel.
US refiners are turning to Canadian suppliers amid constrained access to Mideast Gulf sour crude grades and rising prices of medium crudes from Brazil and Guyana, which are seeing strong demand from Europe and the Asia-Pacific region.
Supply disruptions caused by the US-Israeli war with Iran are also holding up refining margins in the US, with the US Gulf coast sweet 3-2-1 crack spread having averaged USD 35.00 per barrel between April 1-6, compared to USD 20.00 per barrel in April 2025.