Canadian heavy crude’s discount to West Texas Intermediate (WTI) narrowed on Thursday.
Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $13 per barrel below the WTI benchmark, according to NE2 Canada Inc, narrower than Wednesday’s settlement of $13.40 per barrel below U.S. crude futures.
Strong U.S. refining demand and expectations that Enbridge Inc’s Line 3 replacement will enter service in October are narrowing differentials, trading sources said.
Light synthetic crude from the oil sands for September delivery traded at $1.35 per barrel below WTI, narrower than the previous day’s settle of $1.40 under.
Global oil prices fell after the International Energy Agency said the spread of the Delta variant of the coronavirus would slow the recovery of global oil demand.