The discount on benchmark heavy Canadian crude versus West Texas Intermediate widened on Friday.
Western Canada Select heavy blend crude for October delivery traded at $20.65 a barrel under WTI, according to NE2 Canada, widening 30 cents from the previous day.
WCS has traded at around $20 a barrel below U.S. futures for much of the summer, pressured by the release of oil from the U.S. Strategic Petroleum Reserve (SPR).
Canadian heavy crude prices are likely to tighten in coming months if the U.S. wraps up the SPR release as expected in October, one industry source said.
Global oil prices rose about 4%, supported by real and threatened cuts to supply, although futures posted a second weekly decline as aggressive interest rate hikes and China’s COVID-19 curbs weighed on the demand outlook.