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Heavy discount narrows as end of monthly trade cycle looms

August 12, 2019 4:13 PM
Reuters

The Canadian heavy crude discount narrowed against benchmark West Texas Intermediate (WTI) futures on Monday:

* Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, last traded at $10.95 per barrel below WTI, according to Net Energy Exchange. On Friday, it settled at $12.00 per barrel below WTI.

* One Calgary-based industry source said there was strong buying as market players covered positions ahead of the end of the monthly trade cycle on Thursday.

* Alberta crude production is curtailed after the provincial government imposed limits in January to ease pipeline congestion and drain storage inventories. Curtailments have been gradually reduced throughout the year.

* Western Canadian crude oil inventories fell in July to their lowest level in nearly two years, energy information provider Genscape said last week.

* Oil prices rose 43 cents to $54.93. Gains were capped as expectations that major producers would continue to reduce global supplies were offset by worries about sluggish growth in crude demand due to the U.S.-China trade war.

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