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Heavy crude discount unchanged amid pipeline delays

November 9, 20184:25 PM Reuters0 Comments

The Canadian heavy oil differential was unchanged against the West Texas Intermediate (WTI) benchmark on Friday, even as shares of Canadian oil producers sank after the construction of a key Alberta export pipeline was blocked by a U.S. court:

* Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta settled on Friday at $42.50 a barrel below WTI crude futures , unchanged from Thursday's settle, according to Shorcan Energy brokers.

* Light synthetic crude from the oil sands for December delivery settled at $30.50 under WTI, narrowing slightly compared with Thursday's settle of $30.75.

* The discount on western Canadian crudes topped records last month as rising production outstripped pipeline capacity, while new crude by rail capacity has not yet reached volumes needed to clear the glut.

* Shares of Canadian oil producers fell on Friday, after a Montana judge blocked construction of TransCanada Corp's Keystone XL pipeline, which would carry crude from Alberta to the United States.

* The Keystone XL delay comes two months after a Canadian court overturned the approval of the Trans Mountain pipeline expansion, throwing that crude export line into regulatory limbo.

* Global oil prices fell nearly 1 percent on Friday as global supply increased and investors worried demand growth could slow, pressuring U.S. crude to its longest stretch of daily declines since 1984.

(Reporting by Julie Gordon in Vancouver; Editing by Chris Reese)

Crude by Rail Keystone XL Trans Mountain Pipeline TransCanada

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