Heavy crude discount widens on bulging stockpiles
The Canadian heavy oil discount widenedon Monday against the West Texas Intermediate (WTI) benchmark,as bulging crude stockpiles in Alberta weighed on prices andreversed part of a recent narrowing of the price spread.
* The discount had been shrinking modestly in the past weekdue to additional railway volumes. However, these shipments havenot meaningfully reduced the supply overhanging the market, aCalgary-based trader said.
* Western Canada Select (WCS) heavy blend crude for Aprildelivery in Hardisty, Alberta, settled at $25.50 a barrel belowthe WTI benchmark crude price , according to ShorcanEnergy brokers, compared with Friday's settle of $24.35.
* Expanding oil production in Alberta combined with tighttransport capacity have caused the supply buildup and abigger-than-usual WCS discount.
* Light synthetic crude from the oil sands for Aprildelivery last traded at $2.35 over WTI, a bigger premium thanFriday's settle of $2.05 over WTI.
(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing byJonathan Oatis)