Western Canada Select (WCS) crude’s discount to the benchmark West Texas Intermediate (WTI) steadied below $25 a barrel on Thursday.
WCS for February delivery in Hardisty, Alberta, traded between $24.90 and $24.80 a barrel below WTI, according to brokerage CalRock, On Wednesday it traded between $25.15 and $24.80 a barrel under U.S. crude.
One Calgary-based crude trade said WCS has been strengthening as U.S. refinery demand picks up, and exports from the U.S. Gulf Coasts were also supporting prices.
The Canadian heavy crude discount has been edging narrower since TC Energy restarted its Keystone pipeline in late December after a leak of 14,000 barrels in Kansas.
Global oil prices gained about $1 a barrel, supported by figures showing U.S consumer prices unexpectedly fell in December and by optimism over China’s demand outlook.
That increase put the outright price of WCS more than over $53 a barrel.