The discount of Western Canada Select (WCS) heavy crude to the North American benchmark West Texas Intermediate futures (WTI) was steady on Tuesday.
* WCS for April delivery in Hardisty, Alberta, settled at $10.65 a barrel under WTI, according to brokerage CalRock, unchanged from Monday.
* The differential between Canadian heavy crude and WTI is approximately $3 tighter than it was at the start of the month.
* This reflects the combined effects of diminished U.S. tariff concerns and stronger-than-usual global heavy crude markets, said Rory Johnston, energy analyst and founder of the Commodity Context newsletter. He said the market appears to be erasing what has been a months-long tariff drag on the relative price of Canadian heavy oil.
* Canada exports approximately 4 million barrels of oil per day, about 90 per cent of its total crude exports, to the United States.
* The White House had previously said energy products from Canada would be subject to a 10% tariff rate but later announced a one-month reprieve that extends until April 2.
* The Trump administration said Tuesday countries can avoid threatened tariffs by cutting their own trade barriers.
* Global oil prices eased about 1% on Tuesday as U.S. President Donald Trump and Russian President Vladimir Putin discussed moves to end the three-year-old war in Ukraine, which could result in a possible easing of sanctions on Russian fuel exports.
(Reporting by Amanda Stephenson in Calgary; Editing by Vijay Kishore)