Canadian heavy crude’s differential to benchmark West Texas Intermediate (WTI) crude widened for a fourth straight day on Friday.
Western Canada Select (WCS) heavy blend crude for March delivery in Hardisty, Alberta, was trading at $14.10 per barrel below the WTI, according to NE2 Canada Inc, having settled at $13.65 per barrel below the U.S. crude benchmark on Thursday.
The differential reached its widest level since Dec. 29.
The heavy differential’s widening reflects milder temperatures in Alberta reducing weather-related oil production problems, and a ramp-up of Suncor Energy’s Fort Hills mine that is boosting supply, an industry source said.
Light synthetic crude from the oil sands traded at $1.35 per barrel over WTI, up from the previous settle of $1.25 over WTI.
Global oil prices surged to fresh seven-year highs, heading for a seventh straight weekly increase, built on ongoing worries about supply disruptions fueled by frigid U.S. weather and ongoing political turmoil among major world producers.