Canadian heavy crude’s discount versus West Texas Intermediate (WTI) narrowed on Tuesday, the first day of the monthly cycle when trading becomes more liquid:
Western Canada Select (WCS) heavy blend crude for January delivery in Hardisty, Alberta, traded at $11.15 per barrel below WTI, according to NE2 Canada Inc, narrower than Monday’s settlement of $11.55 under.
Tight heavy oil supplies for U.S. Gulf refiners are keeping the heavy differential narrow, a Calgary trading source said. Increasing Canadian oil production has resulted in modestly wider differentials for later delivery.
Suncor Energy and Imperial Oil forecast higher 2021 production in the past two weeks.
Mainline operator Enbridge Inc said on Monday that it was ready to start construction of its Line 3 replacement in Minnesota.
Light synthetic oil from the oil sands for January delivery traded at $3.85 below WTI, narrower than Monday’s settle of $4.35 under.
Global oil prices extended losses to a second day after OPEC and its allies left markets in limbo by postponing a formal meeting to decide whether to lift output.