Canadian heavy crude’s differential to West Texas Intermediate (WTI) narrowed on Monday, strengthening slightly after five straight sessions of marching wider.
Western Canada Select heavy blend crude for December delivery in Hardisty, Alberta, last traded at $19.50 per barrel below the WTI benchmark, according to NE2 Canada Inc, narrowing from Friday’s settlement of $20.25 per barrel below the benchmark.
Friday’s settle was the widest discount on Canadian heavy crude since April 2020, which market sources attributed to weak demand on the U.S. Gulf Coast and robust Canadian crude production.
Canada’s oil sands are expected to hit record production in coming months as producers squeeze more production out of their assets and Suncor Energy’s Fort Hills oil sands project ramps up production.
The outright price of WCS is trading at more than $62 a barrel due to strong global crude prices.
Brent and U.S. benchmark oil prices rose as positive signs for global economic growth supported the outlook for energy demand and the United States said it was weighing options to address high prices.