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.