BNN: Oil patch rides the rails to price surge

Price discounts on western Canada's heavy oil have narrowed dramatically, as producers move record amounts of crude by rail in order to sidestep pipeline bottlenecks and reach thirsty U.S. refineries.

The price spread between Western Canadian Select and the North American benchmark is at its narrowest in more than a year, after shrinking rapidly in the last month. WCS sold for about $78 US a barrel late last week, about $15 a barrel less than West Texas intermediate oil. That so-called differential had reached nearly $35 in January.