What WCS represents
WCS is a blended western Canadian heavy-crude stream. It was created to combine several heavy streams, including conventional heavy crude and oil-sands bitumen, into a benchmark that can move through shared storage and pipeline systems.
Why WCS is compared with WTI
WTI is the main North American light-crude reference at Cushing, Oklahoma. Comparing observations from the same month shows the difference between a light sweet inland US marker and a heavy sour Canadian marker at Hardisty.
Why the discount changes
The difference can widen or narrow with pipeline capacity, refinery outages, transport costs, regional supply and demand for heavy crude. Density and sulfur affect processing needs, but market access can be just as important.