Western Canada Select (WCS) heavy blend crude for March delivery in Hardisty, Alberta, was trading at $18 per barrel below WTI, according to NE2 Canada Inc, slightly narrower than Thursday’s settle of $18.05 under.
Canada said on Thursday it would impose temporary speed limits on trains hauling dangerous goods after a Canadian Pacific Railway Ltd crude oil train derailed and caught fire.
The speed limits could reduce current Canadian crude by rail capacity by 10%, Morgan Stanley analyst Benny Wong said.
Ottawa’s action is likely to increase domestic oil inventories, but not cause a “material blow-out” of differentials, Eight Capital analyst Phil Skolnick said.
Light synthetic crude from the oil sands traded at $4.40 below WTI, unchanged from Thursday’s settle.
Global oil prices fell 1% as Russia said it needed more time before committing to output cuts sought by other large producers while the coronavirus outbreak fanned worries about global crude demand.
The Canadian government-owned Trans Mountain oil pipeline is expected to cost C$12.6 billion ($9.47 billion) to expand, a sharp increase from the previous estimate of C$7.4 billion, the pipeline company’s chief executive said.
Canada’s biggest pipeline company, Enbridge Inc , fired back at the country’s largest oil producer, saying Canadian Natural Resources’ suggestions for determining future terms on the Mainline would cause at least a one-year delay.