Western Canada Select (WCS) crude’s discount to the benchmark West Texas Intermediate (WTI) was steady on Monday, the first day of a new trading window.
WCS for May delivery in Hardisty, Alberta traded between $14.55 and $14.00 a barrel under WTI, according to brokerage CalRock, having traded between $14.55 and $14.35 a barrel under the U.S. benchmark on Friday.
Producer group OPEC+’s surprise supply cut is likely to spur more exports from Canadian crude from the U.S. Gulf Coast, analysts said.
Canada’s oil sands projects are also entering turnaround season, which typically crimps supply and strengthens prices.
Oil benchmarks jumped 6% after the OPEC+ group jolted markets with plans to cut more production, raising fears of tightening supplies while some warned of reduced demand if oil refiners flinch at paying higher prices for crude.
The outright price of WCS was just under $66 a barrel.