Canadian heavy crude’s discount widened slightly versus the U.S. benchmark West Texas Intermediate (WTI) crude on Monday, remaining in a narrow range as global crude oil prices collapsed.
Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, settled at $13.50 per barrel below WTI, according to NE2 Canada Inc, wider than Friday’s settle of $13.40 under.
The drop in international prices prevented the gap between WCS and WTI from widening significantly, a trader said. A steeper discount could make sales uneconomic.
Global oil prices suffered their biggest daily rout since the 1991 Gulf War as top producers Saudi Arabia and Russia began a price war that threatens to overwhelm global oil markets with supply.
On Tuesday, the WCS-WTI differential was as narrow as $13, the smallest since Oct. 2.
Alberta’s hopes of a rebound this year for its long-struggling oil patch have been dashed by a crash in global crude prices, dragging down producers’ stocks and leaving the Canadian province’s budget in shreds.
Light synthetic crude from the oil sands settled at $3 over WTI, slightly wider than Friday’s settle of $2.90.