Canadian heavy crude’s discount to West Texas Intermediate (WTI) narrowed on Wednesday, extending the previous day’s gains.
Western Canada Select (WCS) heavy blend crude for February delivery in Hardisty, Alberta, traded at $11.30 per barrel below WTI, according to NE2 Canada Inc, narrowing from Tuesday’s settle of $12.50 a barrel under WTI.
One industry source said there was strong demand from spot shippers and refiners.
The differential on Canadian heavy crude hit its widest level since April last week, but has narrowed in recent days. The Canadian crude market trading window, in which the bulk of activity takes place, will close on Friday.
Light synthetic crude from the oil sands for February delivery also narrowed to trade at $3.00 a barrel below WTI, tightening from Tuesday’s settle of $3.70 a barrel under the benchmark.
Capital investment in Canada’s upstream oil and gas industry will rise 14% this year to C$27.3 billion ($21.44 billion), according to the Canadian Association of Petroleum Producers (CAPP) although spending remains well below pre-pandemic levels.
Global oil prices fell on Wednesday, pulling back from recent gains, on concerns that rising global COVID-19 will hamper global fuel demand.29dk2902l