Canadian heavy crude’s differential to benchmark West Texas Intermediate (WTI) crude narrowed 10 cents on Monday, the final day of the monthly trading window.
Western Canada Select heavy blend crude for February delivery in Hardisty, Alberta, last traded at $12.80 per barrel below the WTI benchmark, according to NE2 Canada Inc, having settled at $12.90 per barrel below the U.S. crude benchmark on Friday.
WCS’s outright value is more than $71 a barrel thanks to strong benchmark prices and the relatively tight differential.
In good news for Canadian producers, the Trans Mountain pipeline returned to full operating pressure, nearly two months after it shut down because of record-breaking rainfall in British Columbia.
Trans Mountain ships 300,000 barrels per day of crude and refined products from Alberta to Burnaby on the Pacific Coast.
Global oil prices rose with investors betting that global supply will remain tight, although restraint by major producers was partially offset by a rise in Libyan output.