Canadian heavy crude’s discount versus West Texas Intermediate (WTI) narrowed on Friday, amid strong demand and low Western Canadian inventories.
Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $10.20 per barrel below WTI, according to NE2 Canada Inc. It settled on Thursday at $10.70 under.
Rising production as curtailed facilities come back on line look to widen the differential this autumn, a trader said.
Indian oil refiner Reliance Industries has agreed to purchase 2 million barrels of Canadian heavy crude per month, three industry sources said, as Venezuelan production looked to decline further.
Light synthetic oil from the oil sands for November delivery traded at $4 below WTI, unchanged from Thursday’s settle.
Global oil prices fell after U.S. President Donald Trump tested positive for COVID-19, roiling risky assets, and as rising global crude output threatens to overwhelm the market’s weak recovery.29dk2902l