Western Canada Select (WCS) crude’s discount to the benchmark West Texas Intermediate (WTI) narrowed slightly on Friday:
WCS heavy blend crude for January delivery in Hardisty, Alberta, was trading at $28.80 barrel under WTI, according to traders, down from the previous session’s settle of $29.15.
The slight narrowing reflects an inventory draw in Western Canada and as the heavy oil market awaits Sunday’s OPEC+ meeting, a trader said.
WCS differentials have been under pressure since late September when factors including a drop in U.S. refinery demand, competition from cheap Russian barrels on the global market and rising Canadian production combined to push the discount sharply wider.
Global oil prices slipped by about $1 a barrel in choppy trading ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) on Sunday and an EU ban on Russian crude on Monday. (Reporting by Rod Nickel; editing by Barbara Lewis)