Canadian heavy crude’s discount narrowed versus West Texas Intermediate (WTI) on Friday, remaining in a narrow band after supply cuts.
Deep oil curtailments in Western Canada have opened ample space on pipelines and kept differentials narrower than usual, according to traders.
Demand for oil should return to pre-pandemic levels in the second half, adding to supply tightness, Haywood Research said in a note.
Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $8.30 per barrel below WTI, according to NE2 Canada Inc, narrower than Thursday’s settle of $8.45 under.
Global oil prices were little changed and headed for a first weekly fall since April as new U.S. coronavirus cases spiked, stoking fears of a second wave of the virus hitting fuel demand.