Western Canada Select (WCS) crude’s discount to the benchmark West Texas Intermediate (WTI) tightened on Thursday.
WCS for March delivery in Hardisty, Alberta, traded between $19.00 and $18.50 a barrel under WTI, according to brokerage CalRock, having settled on Wednesday at $19.00 a barrel under the U.S. benchmark.
Canadian heavy crude has been steadily narrowing this year and is expected to strengthen further ahead of a new refinery in Mexico starting up in July and the Trans Mountain pipeline expansion being completed later this year.
Global crude prices eased as oil infrastructure appeared to have escaped serious damage from the earthquake that devastated parts of Turkey and Syria, while U.S. inventories swelled and investors worried about Federal Reserve rate hikes.