Western Canada Select (WCS) crude’s discount to the benchmark West Texas Intermediate (WTI) narrowed on Tuesday to less than $20 a barrel:
* WCS for March delivery in Hardisty, Alberta, traded between $19.60 and $18.75 a barrel below WTI, according to brokerage CalRock, strengthening from Monday, when it traded between $21.80 and $20.00 a barrel under the benchmark.
* The ARC Energy Research Institute said that was the tightest differential since September last year.
* 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, while market players are also looking ahead to spring maintenance in the oil sands that will crimp supply.
* Global oil prices climbed more than 3% after the head of the U.S. central bank eased market concerns over interest rate hikes, while recovering demand in China also boosted prices. (Reporting by Nia Williams; Editing by Subhranshu Sahu)