Canadian heavy crude’s discount narrowed slightly versus West Texas Intermediate (WTI) on Monday, in thin summer trading.
Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $11.80 per barrel below WTI, according to NE2 Canada Inc. It settled on Friday at $11.90 under.
The market is range-bound, with any narrowing reflecting attractive heavy crude refining margins in the U.S. Midwest, and widening due to big Canadian oil producers restoring shut-in production, a trader said.
Alberta’s in-situ bitumen production rose 6% in June from the previous month as shut-in volumes started ramping back up, RBC Dominion Securities said in a research note.
Light synthetic crude from the oil sands for September delivery traded at $2.50 a barrel under WTI, narrower than Friday’s settle of $2.60 under.
Global oil prices rose, supported by an improvement in Chinese factory data, rising energy demand and hopes for an agreement in the United States on more coronavirus-related economic stimulus.
