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Heavy discount narrows slightly on improving demand, low stocks

October 13, 2020 1:53 PM
Reuters

Canadian heavy crude’s discount versus West Texas Intermediate (WTI) narrowed slightly on Tuesday, with demand improving and inventories low.

Western Canada Select (WCS) heavy blend crude for November delivery in Hardisty, Alberta, traded at $9.35 per barrel below WTI, according to NE2 Canada Inc. It settled on Friday at $9.40 under.

Even so, investment bank Raymond James estimates a net WCS price for the fourth quarter of C$34.55 per barrel, down 2% from its previous estimate, and a first-quarter 2021 estimate of C$33.20, down 7% from the previous estimate.

The Trans Mountain pipeline system is apportioned by 7% for October, the government-owned pipeline said last week.

Light synthetic oil from the oil sands for November delivery traded at $3.25 below WTI, tighter than Friday’s settle of $3.55 under.

Global oil prices rebounded, supported by robust economic data from China that offset returning supply in other regions. But gains were capped by forecasts for a slow recovery in global oil demand as coronavirus cases rise. 29dk2902l

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