Canadian oil has joined the ranks of the most-traded crude blends on the CME Group, an indication of the growing footprint oil sands production is leaving on broader crude markets.
The Net Energy Inc. WCC contract, a financial trade based on the Western Canadian Select that is the country’s most prominent heavy oil grade, started slow. In the third quarter of 2010, just 210 WCC contracts changed hands. But in the past three quarters it has shot up, averaging 10,600 contracts a quarter. Current open interest stands at just under 20,000 contracts – some 20-million barrels – stretching through to December 2016.