Canadian heavy crude’s differential to West Texas Intermediate (WTI) tightened on Monday as the monthly trading window drew to a close.
Western Canada Select heavy blend crude for December delivery in Hardisty, Alberta, last traded at $19.25 per barrel below the WTI benchmark, according to NE2 Canada Inc, narrower from Friday’s settle of $19.85 per barrel below the benchmark.
Light synthetic crude from the oil sands for December delivery was unchanged at $4.00 a barrel below the benchmark.
Canadian crude prices showed limited reaction to the precautionary shutdown of the 300,000 barrel per day Trans Mountain pipeline because of heavy flooding in British Columbia. Analysts said the severity of the impact would depend on how long the pipeline is out of action.
Global oil prices were mixed as investors wondered whether crude supplies will increase and whether demand will be pressured by the recent surge in energy costs, the strong dollar and rising COVID-19 cases.