Canadian heavy crude’s discount to West Texas Intermediate (WTI) edged narrower on Monday.
Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $12.95 per barrel below the WTI benchmark, according to NE2 Canada Inc, having settled at $13 per barrel below WTI on Friday.
Enbridge Inc’s Line 3 pipeline replacement project, which would add around 370,000 barrel per day of capacity, is expected to enter service as early as October. One industry source said traders were anticipating additional demand for crude to fill that pipeline.
Global oil prices settled lower, paring steep losses on weak Chinese economic data after sources told Reuters that OPEC and its allies believe the markets do not need more oil than they plan to release in the coming months.