Canadian heavy crude’s discount narrowed to a 1-month low versus West Texas Intermediate (WTI) on Monday, supported by modestly increasing demand.
All eyes are on the Midwest refining sector, a major buyer of Canadian oil, where utilization rates are inching higher as supply returns to the market, a trader said.
Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $7.65 per barrel below WTI, according to NE2 Canada Inc, narrower than Friday’s settle of $8.40 under.
The differential touched the narrowest intraday level since June 2.
A U.S. District Court ordered Energy Transfer LP to shut and empty the largest pipeline from the North Dakota shale oil fields within 30 days, a development expected to weigh on light oil prices.
Positive economic data supported global oil prices, while a spike in coronavirus cases that could curb fuel demand in the United States limited gains.
WCS oil at Hardisty looks to average C$30.35 per barrel in 2020, consultancy Deloitte said.
Canadian refining runs were 50,000 barrels per day lower week over week, as of June 23, well below the three-year average, Tudor Pickering Holt & Co said.