The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) narrowed slightly on Monday, as the new monthly trade cycle got underway:
* WCS for January delivery in Hardisty, Alberta, settled at $12.00 a barrel under the WTI benchmark, according to brokerage CalRock, having settled at a discount of $12.30 a barrel under the U.S. benchmark on Friday.
* Monday was the start of the Canadian crude market’s trade cycle, which runs from the first of each month until the day before pipeline nominations are due, and in which the bulk of trading activity takes place.
* Global oil prices were little changed on the day, as hopes of stronger demand stemming from higher factory activity in China were largely offset by concerns that the U.S. Federal Reserve will not cut interest rates again at its December meeting.
* The outright price of WCS was just above $56 a barrel.
(Reporting by Nia Williams in British Columbia; Editing by Rashmi Aich)