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Alberta’s loosening of crude-production limits has renewed risks of a price collapse similar to the one experienced in 2018.

Oilsands benchmark Western Canadian Select is trading near the weakest discount to West Texas Intermediate in more than a month, data compiled by Bloomberg show. At the same time, the discount for Edmonton Mixed Sweet crude, a benchmark for Canada’s conventional producers and shale frackers, grew to the widest in more than a year.

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Those differentials suggest that Canadian oil is at high risk of a “blowout,” according to a report by Credit Suisse analyst Manav Gupta.

Alberta’s government has loosened output limits imposed at the start of 2019 to counter a glut caused by a lack of pipeline capacity and too much oil production. Before the cuts, Western Canadian Select’s discount to WTI has grown as wide as US$50 a barrel.