The discount on Canadian heavy crude versus the West Texas Intermediate benchmark widened on Wednesday, the first day of the new monthly trade cycle.
Western Canada Select heavy blend crude for July delivery in Hardisty, Alberta, last traded at $17.45 a barrel below WTI, according to NE2 Group, widening from the previous settlement of $17.00 a barrel under the benchmark.
Canadian heavy barrels were following sour crude barrels on the Gulf Coast lower, one industry source said, weighed down by the U.S. government’s ongoing release of oil from Strategic Petroleum Reserves.
Light synthetic crude from the oil sands for July delivery last traded at $7.50 a barrel over WTI, climbing $1.75 from the previous settlement.
Maintenance at major upgraders in the oil sands, including the Syncrude project majority-owned by Suncor Energy is reducing synthetic crude supply and keeping prices at elevated levels.
Global oil prices rose after European Union leaders agreed to a phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai, which could bolster demand in an already tight market.