Bakken crude differentials firmed on Monday to the strongest level in a month, moving alongside rising Canadian prices after Alberta officials mandated oil-production cuts over the weekend, traders said.
Bakken crude for delivery on the Enbridge Inc pipeline at Clearbrook, Minnesota, traded at a $5 per barrel discount to the calendar month average of U.S. crude futures, traders said. That is the strongest since Oct. 24 and up from a $9.40 discount on Friday.
Crude from North Dakota’s Bakken shale, the country’s third-largest shale oil field, traded at a record $20 discount to U.S. crude last month. Record-breaking oil production has overwhelmed pipelines out of the Bakken and kept prices well below benchmark futures.
Bakken crude’s rally followed Canadian crude, after Alberta Premier Rachel Notley said Canada would cut crude production by 8.7 percent, or 325,000 barrels per day, in an effort to stop producing more crude than can be carried to market by pipeline and rail.
Western Canadian Select (WCS) traded in the low $20 range below U.S. crude futures on Monday, down from Friday’s settle of $32 below the West Texas Intermediate benchmark, according to Shorcan Energy brokers.