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Heavy discount steady as Aug trade window nears end

July 15, 2020 3:29 PM
Reuters

Canadian heavy crude’s discount steadied versus West Texas Intermediate (WTI) on Wednesday as the August trading cycle winds down, traders said.

Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $7.10 per barrel below WTI after settling at $7.10 below WTI on Tuesday, according to NE2 Canada Inc.

The last trading day for the August cycle is Thursday, dealers said.

Prices have been supported this week on limited production gains and increased pipeline takeaway capacity, trade sources and analysts have said.

Light synthetic crude from the oil sands for August delivery traded at $1.05 under WTI, after Tuesday’s settle of $1.25 under.

Benchmark oil prices rose 2% on Wednesday, supported by a sharp drop in U.S. crude inventories, but further gains were limited as OPEC and its allies are set to ease supply curbs from August as the global economy gradually recovers from the coronavirus pandemic.

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