RE:RE:RE:RE:RE:For those who care... In general, the price an oil producer receives for their product depends on two things, the type of oil and where they sell it.
The two main oil type differentiators are viscosity and amount of sulfur. Heavy oil is more viscous than light oil. Sour oil has a higher sulfur content than sweet oil. Refineries are designed for specific oil types. Also the different oil types produce different amounts of end products (gasoline, kerosene, asphalt, etc.).
Location of the sale matters due to transportation costs and a lot of Canadian oil is not refined in Canada. If you produce oil in Alberta which is refined in Louisiana, the price in Alberta is the price received in Louisiana minus the cost to get it there. Transportation by rail is more expensive than by pipeline.
WTI is the light sweet oil price in Cushing Oklahoma. Cushing being a main storage and transfer hub.
WCS is a heavy sour oil price in Hardistry Alberta (think oilsands).
MRG_WPG wrote: I guess I find the WCS/WCI thing confusing... Do stocks like TVE and WCP move based on WCS or WTI ?
Thanks