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Heavy oil discount widens

June 3, 20245:56 PM Reuters0 Comments

crude oil rail cars The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) widened on Monday as the new monthly trade cycle got underway:

* WCS for July delivery in Hardisty, Alberta, traded at $12.50 a barrel below WTI, according to brokerage CalRock, having settled at $11.75 a barrel under the benchmark on Friday.

* Canadian heavy crude prices remain relatively strong, however, gaining support from increased access to global markets via the 590,000 barrel-per-day Trans Mountain pipeline expansion, which started operating last month.

* Chinese refiner Rongsheng Petrochemical has bought its first Canadian crude cargo via Trans Mountain from TotalEnergies through a tender, several trade sources said on Monday.

* Global oil prices tumbled by $3 a barrel to their lowest in nearly four months, as investors worried that a complicated OPEC+ output decision could lead to higher supplies later in the year even though demand growth has been slow.

(Reporting by Nia Williams in British Columbia; Editing by Anil D’Silva)

TotalEnergies Trans Mountain Pipeline

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