Canadian heavy crude’s discount versus West Texas Intermediate (WTI) narrowed slightly on Monday, trading in a tight 15-cent-per-barrel range:
Western Canada Select (WCS) heavy blend crude for January delivery in Hardisty, Alberta, traded at $12.25 per barrel below WTI, according to NE2 Canada Inc, a tad lower than Friday’s settlement of $12.30 under.
Demand for WCS looks to remain slack during the trading cycle with refinery operating rates below normal due to the pandemic hitting fuel demand, offset somewhat by reduced Canadian production and lower global supplies of heavy, sour oil, said Iqbal Gill, head of hydrocarbon supply at BarrelTEX.
The WCS-WTI differential at Hardisty looks to remain in the minus-$12 to minus-$13.50 range into the first quarter, Gill said.
On Friday, the differential touched $12.50, the highest discount since April.
Canada’s crude exports and imports from the United States fell in October, according to Statistics Canada data.
Light synthetic oil from the oil sands for January delivery traded at $4.25 below WTI, narrower than Friday’s settle of $4.70 under.
Global oil prices slipped as the positive impact from COVID-19 vaccine news and an OPEC+ deal on oil production cuts was undermined by surging coronavirus cases and heightened tensions between the United States and China. 29dk2902l