Western Canada Select (WCS) crude’s discount to the benchmark West Texas Intermediate (WTI) tightened on Monday.
WCS for March delivery in Hardisty, Alberta, traded between $21.80 and $20.00 a barrel below WTI, according to brokerage CalRock, strengthening from Friday, when it traded at $22.50 a barrel under the U.S. benchmark.
Canadian heavy crude has been steadily narrowing this year following the completion of the U.S. Strategic Petroleum Reserve release in 2022 that flooded the market with sour crude. Traders in Calgary said WCS prices could tighten further as the oil sands maintenance season got underway, reducing supply.
Global oil prices edged higher in choppy trading as markets weighed a return in demand from China against supply concerns and fears of slower growth in major economies curbing consumption.