The discount on Western Canada Select to the North American benchmark West Texas Intermediate futures widened on Monday.
WCS for August delivery in Hardisty, Alberta, settled at $10.40 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, compared with $10.20 a barrel on Friday.
* The differential between Canadian heavy crude and the U.S. benchmark has been wider in July than it was last month, when concerns about wildfires in Canada’s oil-producing regions led to a temporary tightening.
* Still, pricing for Canadian crude remains historically strong, in part due to the opening of the Trans Mountain pipeline expansion, which boosted the country’s oil export capacity to Asian markets.
* Summer and the return of road construction season are a seasonally strong time of year for Canadian heavy crude, which is used by U.S. refiners to produce asphalt.
* Canadian crude has also benefited from U.S. sanctions on Venezuela and other countries, which has increased demand for non-sanctioned heavy crude producers.
* Global oil prices settled down on Monday by more than $1 per barrel, as investors weighed new threats from U.S. President Donald Trump for sanctions on buyers of Russian oil that may affect global supplies, while still worried about Trump’s tariffs.
(Reporting by Amanda Stephenson in Calgary; Editing by Mohammed Safi Shamsi)