Canadian heavy crude’s discount versus West Texas Intermediate (WTI) narrowed on Friday with supplies tight and demand for this type of oil strengthening.
Western Canada Select (WCS) heavy blend crude for December delivery in Hardisty, Alberta, traded at $9.35 per barrel below WTI, according to NE2 Canada Inc, narrowing from Thursday’s settlement of $9.75.
Much Canadian oil production remains offline and refiners are actively searching for heavy oil, keeping the differential tight, a trader said.
Declining heavy oil production from Venezuela and Mexico has directed more demand to Canada, analysts and traders have said.
Canadian producers are raising production due to the lifting of Alberta government curbs and stable prices.
Light synthetic oil from the oil sands for December delivery traded at $3.50 below WTI, slightly narrower than Thursday’s settle of $3.55 under.
Global oil prices fell as new lockdowns in Europe to halt surging COVID-19 infections sparked concern over the demand outlook while drawn-out vote counting in the U.S. election kept markets on edge. 29dk2902l