The discount on Western Canada Select (WCS) to the North American benchmark West Texas Intermediate futures (WTI) widened on Thursday.
WCS for June delivery in Hardisty, Alberta, settled at $9.10 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, after having settled at $8.75 under the U.S. benchmark on Wednesday.
* Canadian heavy crude has been trading at a tight discount in recent months in part due to the opening of the Trans Mountain pipeline expansion one year ago, which boosted the country’s oil export capacity. WCS also typically sees seasonal strength this time of year as the return of summer driving season ramps up refinery demand.
* Canadian crude has also benefited from U.S. sanctions on Venezuela and other countries, which is boosting demand for non-sanctioned heavy crude producers.
* Scott Stauth, president of Canada’s largest oil producer Canadian Natural Resources, told analysts on a conference call Thursday that he expects the Western Canada Select discount to be maintained within a range of tightness for the next few quarters.
* Global oil prices rose around 3% on Thursday, buoyed by hopes of a breakthrough in looming trade talks between the U.S. and China, the world’s two largest oil consumers.
(Reporting by Amanda Stephenson in Calgary; Editing by Shilpi Majumdar)