Western Canada Select (WCS) heavy crude’s discount to the benchmark West Texas Intermediate (WTI) narrowed on Monday.
WCS for June delivery in Hardisty, Alberta, traded between $14.90 and $14.75 a barrel under WTI, according to brokerage CalRock. Last week Canadian heavy crude was trading under $15 a barrel.
Monday was the first day of the monthly Canadian crude trading window, which runs from the first of each month until the day before export pipeline nominations are due.
Heavy Canadian crude prices typically tighten in the summer months as asphalt demand picks up, said one Canadian crude trader, although there were also signs of slowing Gulf Coast export demand that could weigh on WCS.
Global oil prices dropped by a dollar a barrel after weak economic data from China and expectations of another U.S. interest rate hike outweighed support from OPEC+ supply cuts that take effect this month.
The outright price of WCS was just under $61 a barrel.