Western Canada Select (WCS) crude’s discount to the benchmark West Texas Intermediate (WTI) widened slightly on Monday as the Keystone pipeline remained shut because of a leak.
WCS for January delivery in Hardisty, Alberta, traded between $28.50 and $28.20 a barrel below WTI, according to brokerage CalRock. On Friday, WCS settled around $27.75 a barrel below U.S. crude.
Five days ago, TC Energy shut its 622,000 barrel-per-day Keystone pipeline, crimping the flow of Canadian oil to U.S. refineries, after a spill into a Kansas creek.
The cause of the leak is still unknown and TC has not said when the pipeline will resume operations.
Global oil prices settled up about $2 a barrel on supply jitters, as Keystone remained closed and Russia threatened a production cut even as China’s loosening COVID-19 restrictions bolstered the fuel demand outlook.