The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) tightened slightly on Monday:
• WCS for June delivery in Hardisty, Alberta, traded at $11.60 a barrel below WTI, according to brokerage CalRock, after closing at $11.75 a barrel below the benchmark on Friday.
• Trading was rangebound, with a slow rally throughout the day, one broker said.
• Canadian heavy crude has traded at a discount of less than $12 a barrel to WTI since the start of this month’s trade cycle, when the 590,000 barrel per day Trans Mountain pipeline expansion (TMX) started commercial operations.
• The WCS differential to U.S. crude is at its narrowest since last July, according to Rory Johnston, founder of the Commodity Context newsletter.
• Global oil futures ended largely unchanged as a ceasefire agreement between Hamas and Israel continued to elude negotiators.
(Reporting by Nia Williams in British Columbia; Editing by Rashmi Aich)