Canadian heavy crude’s discount to West Texas Intermediate (WTI) narrowed on Monday.
Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $13.55 per barrel below the WTI benchmark, according to NE2 Canada Inc, narrower than Friday’s settlement of $13.75 per barrel below U.S. crude futures.
Expectations that Enbridge Inc’s Line 3 pipeline replacement in Minnesota will begin service in the fourth quarter is promoting narrowing sentiment, said Martin King, senior analyst at RBN Energy.
A Diluent Recovery Unit, jointly owned by Gibson Energy and USD Partners, is expected to begin commercial operation this fall, providing further egress relief, King said.
Light synthetic crude from the oil sands for September delivery traded at $1.45 per barrel below WTI, wider than the previous day’s settle of $1.35 under.
Global oil prices fell, extending last week’s steep losses on the back of a rising U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand.