TORONTO - A sharp drop in the price of Alberta heavy crude last month has pushed down the Scotiabank commodity price index by 4.6 per cent.
Scotiabank (TSX:BNS) says a benchmark Alberta heavy crude, known as Western Canadian Select, dropped to US$57.84 per barrel last month.
That's down nearly US$15 a barrel from November, a drop of about 20 per cent.
It's also about US$30 a barrel below the price paid for West Texas Intermediate, a more widely used North American benchmark crude.
Alberta heavy crude has long been sold at a discount to other grades because of the additional processing required to turn it into products such as gasoline.
But Scotiabank's report says the discount on Alberta heavy crude widened considerably last month and it's expected to grow in January and February.