The Canadian heavy oil differential moved to the narrowest level since mid-2015 against the West Texas Intermediate (WTI) benchmark on Wednesday, as government-ordered curtailments and brisk crude-by-rail shipments boosted prices:
* Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, settled at $8.15 a barrel below WTI crude futures , narrower than Tuesday's settle of $9.20 below WTI, according to Net Energy Exchange.
* The settled price is the lowest differential, or discount, on Canadian heavy crude to WTI since June 2015, according to Net Energy Exchange data.
* The narrowing of the differential is "way overdone" and it should widen soon, a Calgary-based trader said. Aggressive bidding by refineries has helped shrink the discount, the trader said.
* Light synthetic crude from the oil sands for February delivery finished at 45 cents over WTI, compared with Tuesday's settle of par.
* Alberta mandated production cuts amounting to 325,000 barrels per day (bpd) starting this month in an effort to drain the Canadian province's excess crude in storage.
* The government on Dec. 30 made amendments to its curtailment rules, factoring in exemptions for some facilities that had been increasing production and for operators with single projects, and taking into account safety considerations.
* Global oil prices jumped on U.S.-China trade talks and OPEC cuts.
* Growing U.S. demand for Canadian heavy oil, due to production declines in Mexico and Venezuela, rising shipments of crude by rail and the curtailments have narrowed the heavy differential, Altacorp Research said.
(Reporting by Rod Nickel in Winnipeg, Manitoba; editing by Diane Craft)
