View Original Article

Heavy discount narrows on oil shut-ins

April 15, 2020 1:06 PM
Reuters

Canadian heavy crude’s discount versus the U.S. benchmark West Texas Intermediate (WTI) oil narrowed on Wednesday, helped by curtailed production.

Shut-ins, estimated so far at 325,000 barrels per day by consultancy Rystad Energy, are accelerating, leaving the Enbridge Mainline short of capacity and supporting prices, a Calgary trading source said.

Canadian crude storage levels saw a small draw this week, the source said, which also underpins prices. Net prices remain among the lowest on record.

Western Canada Select (WCS) heavy blend crude for May delivery in Hardisty, Alberta, traded at $13.25 per barrel below WTI, according to NE2 Canada Inc, narrower than Tuesday’s settle of $14.75 under.

Global oil prices ended lower after a record U.S. crude storage build.

Light synthetic crude for May delivery traded at $8.25 below WTI, narrower than Tuesday’s settle of $9 under.

Sign up for the BOE Report Daily Digest E-mail Return to Home