Canadian heavy crude’s discount versus West Texas Intermediate (WTI) widened on Tuesday as producers gradually increased output.
Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, traded at $9.60 per barrel below WTI, according to NE2 Canada Inc. It settled on Monday at $9.35 under.
Rising crude production in Alberta is expected to modestly widen heavy differentials into the end of the year and early 2021, but demand from U.S. Gulf refiners has also been strong, keeping stocks low, a Calgary industry source said.
Alberta’s government lifted its oil curtailment orders effective in December. The orders had been in place since last year to match production to egress capacity.
Canadian producers are raising production due to the lifting of government curbs and stable prices.
Light synthetic oil from the oil sands for December delivery traded at $3.10 below WTI, wider than Monday’s settle of $2.60 under.
Global oil prices rose over 2%, advancing with other financial markets on U.S. Election Day although traders were bracing for volatility depending on the voting results. 29dk2902l