The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) widened on Wednesday:
WCS for November delivery in Hardisty, Alberta, settled at $20.75 a barrel under WTI, according to brokerage CalRock, weakening from a close of $19.75 a barrel under the U.S. benchmark on Tuesday.
The deeper discount on Canadian heavy crude came amid a $5 a barrel dive in WTI prices as concerns about fuel demand destruction and a bleaker macroeconomic picture took centre stage.
TC Energy’s 600,000 barrel-per-day Keystone pipeline returned to normal operations after briefly being shutdown on Tuesday for maintenance, sources said. The disruption will not impact contracted deliveries to customers.
Canadian heavy crude prices have been widening in recent weeks due to refinery maintenance crimping demand and expectations the 590,000 barrel-per-day (bpd) Trans Mountain pipeline expansion will be delayed beyond the first quarter of 2024.
(Reporting by Nia Williams in British Columbia; Editing by Rashmi Aich)