Canadian heavy and synthetic crude differentials weakened slightly on Monday.
Light synthetic crude from the oil sands for April delivery settled at $5.85 per barrel over the West Texas Intermediate (WTI) benchmark, according to NE2 Canada Inc, down from Friday’s settle of $5.95 per barrel over WTI.
Synthetic prices surged sharply higher to a peak of $6.85 a barrel over WTI last week, and one industry source in Calgary said prices were easing after being over-bought.
Western Canada Select heavy blend crude for April delivery in Hardisty, Alberta, settled at $13.15 a barrel over WTI, widening 45 cents from Friday’s settle.
Canadian crude prices are expected to remain strong throughout the second quarter as annual maintenance work in the oil sands will shutter roughly 5% of Canada’s crude output.
Global benchmark oil prices fell more than 5% to the lowest in nearly two weeks amid hopes for progress toward a diplomatic end to Russia’s invasion of Ukraine – a development that would boost global supplies – while a pandemic-linked travel ban in China cast doubt on demand.