Canadian heavy crude’s discount narrowed versus U.S. benchmark West Texas Intermediate (WTI) oil on Thursday, as falling global prices raised the potential for production cuts.
Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, settled at $12 per barrel below WTI, according to NE2 Canada Inc, narrower than Wednesday’s settle of $12.75 under.
Canadian heavy prices have maintained a narrow differential with U.S. prices due to the potential of output being shut down if they get too low, a trader said.
Husky Energy on Thursday was the latest Canadian oil producer to cut 2020 spending and production.
The heavy differential dipped to as little as $10.50 on Monday, the smallest since Aug. 21, 2019.
Light synthetic crude from the oil sands ended at $1 under WTI, turning to a discount after Wednesday’s settle of $1.05 over.
Brent crude slid 7% after President Donald Trump restricted travel to the United States from Europe as part of measures to try to halt the spread of coronavirus.