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Heavy oil differential narrows slightly

March 12, 2024 3:21 PM
Reuters


The differential of Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) narrowed slightly on Tuesday.

* WCS for April delivery in Hardisty, Alberta began and ended the trading session at $15.10 per barrel under WTI, according to brokerage CalRock. On Monday, WCS had traded between $15.15 and $15.30 below the U.S. benchmark.

* Tight crude supplies due to oil sands maintenance and anticipation about startup of the Trans Mountain pipeline expansion in the second quarter will likely keep narrowing differentials in April and May, said Rory Johnston, author of Commodity Context.

* Global oil futures settled slightly lower after a higher-than-expected forecast for U.S. crude oil production and bearish economic data, but persistent geopolitical tensions limited declines.

(Reporting by Rod Nickel in Winnipeg, Manitoba)

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