Western Canada Select (WCS) heavy crude’s discount to the benchmark West Texas Intermediate (WTI) widened on Monday.
WCS for May delivery in Hardisty, Alberta, traded between $16.30 and $15.80 a barrel under WTI, according to brokerage CalRock, after having traded between $15.60 and $15.50 a barrel under the U.S. benchmark on Thursday, the last session before the Good Friday holiday.
Long positions held by some buyers are keeping the demand in check, while cool weather has kept the ground in Western Canada solid, limiting the usual production reduction during spring breakup season, an industry source said.
Light synthetic crude from the oil sands for May delivery traded at $2.75 to $2.90 over WTI, after not changing hands on Thursday, according to CalRock.
Global oil prices slipped, after rising for three straight weeks, as concern about further interest rate hikes that could curb demand balanced the prospect of a tighter market due to supply cuts from OPEC+ producers.