The discount on Western Canada Select to North American benchmark West Texas Intermediate futures settled at $10.25 a barrel under the U.S. benchmark WTI on Wednesday, its narrowest differential since July.
WCS for November delivery in Hardisty, Alberta, narrowed from $10.30 a barrel on Tuesday, according to brokerage CalRock.
* The WCS discount typically widens after the summer driving season ends, but has seen a contrary pattern this year.
* October’s tight discount is being driven by supply impacts from seasonal maintenance in the Canadian oil sands, strong Asian buying, and strong demand from U.S. refineries, analysts say.
* Oil prices eased on Wednesday to a five-month low on escalating U.S.-China trade tensions and the International Energy Agency’s prediction of a supply surplus in 2026.
(Reporting by Amanda Stephenson in Calgary; Editing by Shreya Biswas)