Western Canada Select (WCS) heavy blend crude for June delivery in Hardisty, Alberta, narrowed to last trade at $13.30 per barrel below WTI, according to NE2 Canada Inc, tightening from Friday’s discount of $13.90 per barrel below the benchmark.
Light synthetic crude from the oil sands for June delivery settled at 50 cents per barrel below WTI, according to NE2. On Friday it settled at 85 cents below U.S. futures.
The Canadian crude market shrugged off disruption in the United States after a cyber attack on the Colonial Pipeline that shut the entire network. Colonial, the largest fuel pipeline in the United States, expects to “substantially” restore operational service by the end of the week, the company said on Monday.
Two Calgary-based market sources said the shutdown was not having a big impact on demand for Canadian crude.
Traders remain more focused on maintenance turnarounds in the oil sands, which have been disrupted by a COVID-19 outbreak in the region. Suncor Energy delayed a major turnaround at its oil sands base plant until at least June.
Global oil prices settled higher after Colonial said it could largely restart within the week.