Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, traded at $15.30 per barrel below WTI, according to NE2 Canada Inc, deepening from the previous day’s settle of $15.05 a barrel under WTI.
Tuesday’s differential was the widest since April 2020.
The Canadian crude market is digesting increased supply after production curtailments imposed by the Alberta provincial government lifted at the end of 2020 and oil companies ramped up output that had been shut in by the coronavirus pandemic.
One market source said rationing on export pipelines in January meant more barrels than expected remained in Alberta, adding to February supply.
Light synthetic oil from the oil sands for February delivery traded at $4.25 below WTI, widening from the Monday’s settle of $4.10 under WTI.
Global oil prices climbed nearly 5% on Tuesday after news that Saudi Arabia will make voluntary cuts to its oil output, while international political tension simmered over Iran’s seizure of a South Korean vessel.29dk2902l