Canadian heavy crude’s differential to benchmark West Texas Intermediate (WTI) crude tightened on Tuesday.
Western Canada Select (WCS) heavy blend crude for March delivery in Hardisty, Alberta last traded at $13.90 per barrel below the WTI benchmark, according to NE2 Canada Inc, having settled at $14.10 per barrel below the U.S. crude benchmark on Monday.
The discount on Canadian crude has widened since the start of the month, and one trading source said market players were focused on a heavy March maintenance schedule for Gulf Coast refineries that will weigh on demand.
Light synthetic crude from the oil sands last traded at $1.15 per barrel over WTI, strengthening 5 cents from the previous day.
Oil slid over 2% from recent seven-year highs as the resumption of indirect talks between the United States and Iran could revive an international nuclear agreement and allow more oil exports from the OPEC producer.