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Heavy crude edges tighter on first day of new monthly trade cycle

March 1, 2021 4:31 PM
Reuters

Canadian heavy crude’s discount to West Texas Intermediate (WTI) narrowed slightly on Monday:

Western Canada Select (WCS) heavy blend crude for April delivery in Hardisty, Alberta, last traded at $11.05 per barrel below WTI, according to NE2 Canada Inc, tightening very slightly from the previous session’s settle of $11.10 a barrel below WTI.

Monday was the first day of the monthly trade cycle, which runs from the first of each month until the day before pipeline nominations are due.

Light synthetic crude from the oil sands for April delivery last traded at $1.50 a barrel over WTI, according to NE2, 70 cents higher than the previous settle. Synthetic prices have jumped higher due to turnarounds at oil sands upgraders that are due to start next month, limiting supply.

Global oil prices fell more than 1% on Monday on fears that Chinese crude consumption is slowing and that OPEC may increase global supply following a meeting this week. 29dk2902l

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