Canadian heavy crude’s discount to West Texas Intermediate (WTI) tightened slightly on Tuesday.
Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $12.90 per barrel below the WTI benchmark, according to NE2 Canada Inc, having settled at $12.95 per barrel below WTI on Monday.
The discount has narrowed steadily throughout the trade cycle, which lasts from the first of each month until the day before nominations to ship crude on export pipelines are due. WCS differentials started August at around $14.80 per barrel below WTI, but have tightened on the news that Enbridge Inc’s Line 3 replacement project may start shipping crude by October.
Global oil prices weakened for a fourth session due to a strong dollar and as surging cases of coronavirus in Japan added to a weak demand picture in Asia.