Canadian heavy crude’s discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Tuesday as global oil prices rose.
Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $7.75 per barrel below WTI, according to NE2 Canada Inc, wider than Monday’s settle of $6.80 under.
Data showed oil production in Canada’s Alberta province fell in April to 3,008 mbpd, down roughly 490 mbpd from the previous month, led by production cuts in the oil sands, analysts at Tudor, Pickering, Holt & Co said.
Light synthetic crude from the oil sands was trading at $1.25 below WTI after Monday’s settle of $0.90 under.
Global oil prices rose on hopes that major crude producers will agree to extend output cuts and as countries and U.S. states begin to reopen after coronavirus lockdowns.