The differential of Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) traded in the $12 range on Thursday, little changed from the previous session.
WCS for May delivery in Hardisty, Alberta traded between $12.40 and $12.60 below WTI, according to brokerage CalRock. On Wednesday, May WCS ended the day at $12.55 below WTI.
Trans Mountain said its expanded oil pipeline would start operating on May 1.
The project’s progress has been the dominant factor in WCS trading this month with the differential narrowing as the pipeline moves closer to opening.
Trans Mountain’s startup date surprised analysts who were expecting a later start during the second quarter.
An industry source said there is skepticism about Trans Mountain meeting its schedule.
Global oil futures extended gains, settling up more than $1 on Thursday, as geopolitical tensions and output cuts outweighed caution about U.S. Federal Reserve rate cuts.
(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Vijay Kishore)