The discount on Western Canada Select to North American benchmark West Texas Intermediate futures narrowed on Tuesday.
WCS for November delivery in Hardisty, Alberta, settled at $10.60 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, compared to Monday’s close of $10.75.
* Canadian crude oil production continues to rise. The oil-producing province of Alberta’s crude output was 4.2 million barrels per day in August, according to the Alberta Energy Regulator, the highest on record for that month.
* The WCS discount has remained at historically tight levels since the opening last year of the Trans Mountain pipeline expansion, which increased export capacity for Canadian oil.
* The Enbridge Mainline system — which transports oil from Alberta to various markets in Canada and the U.S. — is not apportioned for October due to less planned maintenance on the system. Apportionment is an industry term for when demand for pipeline space exceeds capacity.
* Oil prices steadied on Tuesday as investors weighed a smaller-than-expected increase to OPEC+ output in November against signs of a potential supply glut.
(Reporting by Amanda Stephenson in Calgary; Editing by Sahal Muhammed)