Canadian heavy crude’s discount to West Texas Intermediate (WTI) was steady on Monday, the first day of the monthly trading window.
Western Canada Select heavy blend crude for December delivery in Hardisty, Alberta, last traded at $15.25 per barrel below the WTI benchmark, according to NE2 Canada Inc, unchanged from the previous day’s settlement.
Monday was the start of the two-and-a-half week Canadian crude trading window, lasting from the first of each month until the day before pipeline nominations are due, in which the bulk of market activity takes place.
The discount on Canadian heavy crude has widened in recent weeks, tracking weaker heavy crude prices on the U.S. Gulf Coast, one market source said. Canadian oil sands production has also been strong over the last few months.
Global oil prices settled higher on expectations of global strong demand and a belief that producer group OPEC+ will keep a tight rein on production.