Canadian heavy crude’s discount to West Texas Intermediate (WTI) edged wider on Thursday.
Western Canada Select heavy blend crude for November delivery in Hardisty, Alberta, last traded at $14.75 per barrel below the U.S. West Texas Intermediate (WTI) benchmark, according to NE2 Canada Inc, having settled at $14.50 per barrel below the benchmark on Wednesday.
The discount on Canadian heavy crude has deepened since the start of the month, after hitting its narrowest level in five months in late September in anticipation of Enbridge Inc bringing its Line 3 replacement project into service. Linefill on the Line 3 pipeline started on Oct. 1.
Strong U.S. crude prices, which WCS trades at a discount to, mean the outright price of Canadian oil is around its highest level since 2014.
Global oil prices rose after top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply and the International Energy Agency said surging natural gas prices could boost demand for oil among power generators.