Canadian heavy crude differentials strengthened slightly on Friday, while synthetic crude weakened but remained near elevated levels.
Light synthetic crude from the oil sands for April delivery settled at $5.95 per barrel over the West Texas Intermediate (WTI) benchmark, according to NE2 Canada Inc, down from Thursday’s settle of $6.05 per barrel over WTI.
Synthetic surged to a peak of $6.85 earlier in the week as traders in Canada and the United States scrambled to secure supplies of light crude.
Annual maintenance work in Alberta’s oil sands will shutter roughly 5% of Canadian crude output this spring, according to analyst estimates, adding to tightness in supplies.
Western Canada Select heavy blend crude for April delivery in Hardisty, Alberta, narrowed marginally to settle at $12.70 a barrel below WTI, compared with $12.85 a barrel below the benchmark on Thursday.
Global benchmark oil prices settled higher but posted their steepest weekly decline since November, as traders assessed potential improvements to the supply outlook that has been disrupted by Russia’s invasion of Ukraine.