The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) was steady on Wednesday amid subdued trading ahead of the U.S. Independence Day holiday:
* WCS for August delivery in Hardisty, Alberta, settled at $15.55 a barrel below WTI, according to brokerage CalRock, flat on the day.
* Gulf demand for Canadian crude has softened over the last couple of weeks, said RBN Energy analyst Martin King on Wednesday.
* In refining, analysts pointed to scheduled maintenance at BP’s 435,000-barrel-per-day (bpd) Whiting, Indiana, scheduled to start this month and last until September. Whiting is a major consumer of Canadian heavy crude.
* However the expansion of the Trans Mountain pipeline will likely provide some support to WCS differentials, with about 20 ships loading crude oil on Canada’s West Coast in the first full month of operation on the newly expanded pipeline.
* While just shy of estimates, analysts say the loadings represent a strong start to operations.
* Global oil prices gained about 1% after a larger-than-expected decline in U.S. crude stocks, but gains were capped by concerns about rising global inventories in thin trading ahead of the U.S. Independence Day holiday.
(Reporting by Georgina McCartney in Houston; Editing by Sandra Maler)