Deep curtailments and ample space in storage and pipelines have compressed differentials, traders say.
Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $8.70 per barrel below WTI, according to NE2 Canada Inc, narrower than Tuesday’s settle of $10.35 under.
Tight Canadian price differentials are contributing to some previously shut-in volumes coming back online, Haywood Capital Markets said in a note.
Light synthetic crude from the oil sands for August delivery traded at $3 under WTI, after Tuesday’s settle of $4.50 under.
Global oil prices gained more than 2%, supported by a drop in U.S. unemployment and a drawdown in crude inventories.
Canada’s Supreme Court removed an obstacle to expansion of the Trans Mountain oil pipeline, dismissing an appeal of a lower court decision that had backed Ottawa’s approval of the project.
Canadian pipeline operator Enbridge Inc can restart operations at the west leg of its Line 5 pipeline while the damaged east leg remains shut, a Michigan circuit court judge ruled on Wednesday.