The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) edged narrower on Wednesday:
* WCS for December delivery in Hardisty, Alberta, settled at $11.40 a barrel under the WTI benchmark, according to brokerage CalRock, having settled at a discount of $11.45 a barrel under the U.S. benchmark on Tuesday.
* Canadian heavy crude differentials are benefiting from the Trans Mountain pipeline expansion (TMX), which opened up more exports to Asia and the U.S. West Coast when it started operating earlier this year.
* RBC Capital Markets said 24 oil tankers set sail from the Port of Vancouver in October, up from 18 the previous month, and analysts expect TMX will support ongoing inventory drawdowns in western Canada and tighten the WCS differential.
* Global oil prices rebounded slightly on short-covering a day after they fell near a two-week low on OPEC’s reduced demand forecast, but gains were limited as the dollar hit a seven-month high.
(Reporting by Nia Williams in British Columbia; Editing by Richard Chang)