Canadian heavy crude’s discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) on Friday, reducing some of the discount that had otherwise expanded this week.
Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $8.70 per barrel below WTI, according to NE2 Canada Inc, narrower than Thursday’s settle of $9.25 under.
The differential has widened overall this week as producers reverse some curtailed oil production, a Calgary trader said. Some Midwest refiners were also turning their buying to lighter crudes that are more conducive to gasoline production as lockdown restrictions eased, the trader said.
Eight Capital said it estimates an average WCS-WTI discount at Hardisty of $11.62 during the second quarter, narrowing to $9.66 in the third quarter.
Canada refining runs for the week ending May 26 were largely unchanged, week over week, Tudor Pickering Holt & Co said.
Global oil prices rose after an unexpected fall in the May U.S. jobless rate and OPEC’s decision to bring forward to Saturday discussions on whether to extend record production cuts.
Exports of Canadian energy products fell C$3.6 billion in April, the largest decrease on record, Statistics Canada said. Crude oil exports led the decline, plunging 55.1%.