Western Canada Select (WCS) crude’s discount to the benchmark West Texas Intermediate (WTI) held broadly steady on Friday.
WCS for March delivery in Hardisty, Alberta traded between $19.25 and $18.40 a barrel under WTI, according to brokerage CalRock, after trading on Thursday between $19.00 and 18.50 a barrel under the U.S. benchmark.
Canadian heavy crude has been narrowing this year and is expected to strengthen further ahead of a new heavy oil refinery in Mexico starting up in July and the Trans Mountain pipeline expansion being completed later this year, which will add 600,000 barrels per day of export capacity.
Pipeline company Enbridge Inc said it is in “constructive” negotiations with oil shippers on a new basis to charge for space on its Mainline pipeline system, after the regulators rejected in 2021 Enbridge’s plan to sell nearly all its space under long-term contract.
Global oil prices rose more than 2% on the day and posted weekly gains of over 8%, as Russia announced plans to reduce oil production next month after the West imposed price caps on the country’s crude and fuel.