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Heavy oil discount widens further

June 12, 2024 4:45 PM

The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) widened on Wednesday:

* WCS for July delivery in Hardisty, Alberta, settled at $13.50 a barrel below WTI, according to brokerage CalRock, having settled at $13.25 a barrel under the benchmark on Tuesday.

* The widening comes as an executive for Trans Mountain Corp said the newly-expanded 890,000 barrel per day pipeline is about 80% full and 22 tankers are scheduled to load in Vancouver this month.

* However, some traders were sceptical that much crude would load, while U.S. refiners have flagged concerns about the quality of crude being shipped on Trans Mountain.

* Global oil prices settled higher as ongoing tensions in the Middle East lent support to prices, but news that interest rate cuts could start as late as December capped gains, following the Federal Reserve’s statement concluding its two-day meeting.

(Reporting by Nia Williams in British Columbia; Editing by Alan Barona)

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