Canadian heavy crude’s discount to West Texas Intermediate (WTI) narrowed on Friday.
Western Canada Select (WCS) heavy blend crude for October delivery in Hardisty, Alberta last traded at $11.65 per barrel below the WTI benchmark, according to NE2 Canada Inc. That was narrower than Thursday’s settlement of $11.90.
Strong refining margins and a drawdown in Canadian oil inventories have supported prices, an industry source said.
Traders have said the market is also supported by increased capacity on Enbridge Inc’s Line 3 pipeline, which is due to start shipping 620,000 barrels per day in October.
Light synthetic crude from the oil sands for October delivery last traded at $1.40 per barrel below WTI, narrower than Thursday’s settlement of $1.45 a barrel below the benchmark.
Global oil prices rose, supported by growing signs of supply tightness in the United States as a result of Hurricane Ida and as U.S.-China trade hopes gave riskier assets a boost.