The discount on Western Canada Select (WCS) heavy crude to North American benchmark West Texas Intermediate (WTI) was steady on Monday.
WCS for August delivery in Hardisty, Alberta, traded between $11.85 and $12.05 a barrel below WTI, according to brokerage CalRock, having traded between $11.95 and $12.00 a barrel below WTI on Friday.
WCS differentials remain strong thanks to factors including improved capacity on export pipelines and competing demand from Asia and the U.S. Gulf Coast, National Bank analysts said in a research note.
Oil dropped by more than 1.5% after weaker-than-expected Chinese economic growth raised doubts over the strength of demand in the world’s second biggest oil consumer, and a partial restart of halted Libyan output also pressured prices.
(Reporting by Nia Williams in British Columbia;)