The differential of Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) traded in the $12 range on Wednesday, similar to the previous session.
WCS for May delivery in Hardisty, Alberta, started trading at $12.50 below WTI, moved to as little as $12.20 and ended the day at $12.55 below WTI, according to brokerage CalRock. On Tuesday, May WCS traded between $12.40 and $12.65 below WTI.
Trans Mountain plans to finish building the final segment of its Canadian oil pipeline expansion in April.
The pipeline’s start of service, expected in the second quarter, will continue to boost WCS prices, said Andrew Botterill, national oil, gas and chemicals leader at Deloitte Canada.
Global oil futures rose as investors worried about supply disruptions from a worsening geopolitical landscape, although a surprise jump in U.S. crude oil inventories eased some of those concerns.
(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Alan Barona)