Canadian heavy crude’s discount versus West Texas Intermediate (WTI) widened slightly on Tuesday but remained in a narrow range, as stockpiles remained low.
Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $9.70 per barrel below WTI, according to NE2 Canada Inc. It settled on Monday at $9.65 under.
Demand for Canadian heavy barrels is holding up relatively well, while inventories are flat, said Martin King, senior analyst at RBN Energy. He added that Alberta refining demand has hit its highest levels since January based on regulator data, although U.S. Midwest demand was not ramping up as strongly.
Canadian crude oil exports to the United States fell by 160,000 barrels per day (bpd) in August to 3.27 million bpd, Statistics Canada said.
Global oil prices rose more than $1 a barrel, supported by U.S. supply disruptions caused by an approaching hurricane in the Gulf of Mexico and an oil worker strike in Norway.29dk2902l