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Heavy discount widens but remains in low range on large curtailments

May 14, 2020 12:40 PM
Reuters

Canadian heavy crude’s discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Thursday, but remained near decade lows as curtailments ease oversupply concerns.

The modest widening this week is due to a few producers moving barrels to buyers as WTI prices rise and Canadian prices reflect only a modest discount, a trader said.

Western Canada Select (WCS) heavy blend crude for June delivery in Hardisty, Alberta, traded at $4.75 per barrel below WTI, according to NE2 Canada Inc, wider than Wednesday’s settle of $4.05 under.

Canadian crude exports to the United States last week hit their lowest level since December 2017, a reflection of some 800,000 barrels per day of announced Western Canadian shut-ins to date, TD analyst Menno Hulshof said in a note.

Global oil prices rose after the International Energy Agency forecast lower global stockpiles in the second half of 2020, even as worries remain over a second surge in coronavirus infections.

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