The discount on Canadian heavy crude versus the West Texas Intermediate (WTI) benchmark inched wider on Tuesday.
Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, settled at $21.25 a barrel below WTI, according to NE2 Group, widening 10 cents from the previous day.
Heavy crude differentials have come under pressure for a number of reasons, including the release of sour crude from the U.S. Strategic Petroleum Reserve and higher natural gas prices that make refining heavy crude more expensive.
Light synthetic crude from the oil sands for August delivery settled at $14.50 a barrel over WTI, having settled at $14.25 a barrel over the benchmark the previous session.
Synthetic crude prices are being boosted by strong distillate demand in the United States.
Global oil tumbled, with Brent settling below $100 a barrel for the first time in three months, on a strengthening dollar, COVID-19 curbs in top crude importer China, and rising fears of a global economic slowdown.