The discount on Western Canada Select (WCS) to the North American benchmark West Texas Intermediate futures (WTI) was unchanged on Wednesday.
WCS for June delivery in Hardisty, Alberta, settled at $9.15 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, flat on Tuesday’s close.
* 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. On average, WCS-WTI differentials have narrowed by $4, or 23%, over the past year, according to RBC Capital Markets.
* Canadian crude has also benefited from U.S. sanctions on Venezuela and other countries, which is boosting demand for non-sanctioned heavy crude producers.
* Globally, oil prices eased on Wednesday after government data showed U.S. crude oil stockpiles rose unexpectedly last week, prompting investor concerns of excess supplies.
(Reporting by Amanda Stephenson in Calgary; Editing by Leroy Leo)