The discount on Canadian heavy crude narrowed versus U.S. benchmark West Texas Intermediate (WTI) crude on Monday from a 13-month high reached last week, but remained elevated on tight takeaway capacity and bloated storage levels.
Anticipation of upcoming turnarounds at U.S. refineries also weighed on Canadian prices, a Calgary-based industry source said.
Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, was trading at $23.25 per barrel below WTI, according to NE2 Canada Inc, smaller than Friday’s settle of $23.80.
The spread touched $24 on Friday, the biggest discount since early December 2018.
Light synthetic crude from the oil sands traded at $4.50 below WTI, unchanged from Friday’s settle.
Oil prices fell about 1% as Middle East tensions eased and investors turned their focus to lackluster seasonal demand following last week’s bearish U.S. report showing a large fuel stockbuilds.