Canadian heavy crude’s differential to West Texas Intermediate (WTI) widened on Tuesday, reversing gains from the previous session.
Western Canada Select heavy blend crude for December delivery in Hardisty, Alberta, last traded at $20.40 per barrel below the WTI benchmark, according to NE2 Canada Inc, widening from Monday’s settlement of $19.50 per barrel below the benchmark.
The differential on Canadian heavy crude has widened this month, weighed down by strong oil sands production and lackluster demand on the U.S. Gulf Coast, the world’s largest heavy crude refining center.
The outright price of WCS is climbing despite the wider differential, trading at more than $63 a barrel due to strong global crude prices.
Global oil prices rose to a two-week high after the United States lifted travel restrictions and other signs of a global post-pandemic recovery boosted the demand outlook, while supply remained tight.