The discount on Western Canada Select to North American benchmark West Texas Intermediate futures narrowed on Tuesday.
WCS for December delivery in Hardisty, Alberta, settled at $11.05 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, compared to Monday’s close of $11.10.
* “The bidding war for Canadian crude remains very strong and the result has been tighter than typical differentials for this time of year,” said RBN Energy analyst Martin King.
* International buying of Canadian crude off the Pacific coast via the Trans Mountain pipeline remains strong, especially by China, King said. Buying of Canadian barrels for re-export out of the Gulf Coast has also been stronger than usual in reaction to additional sanctions on Russia, he added.
* Oil prices settled lower on Tuesday as weaker manufacturing numbers and a stronger dollar weighed on demand, while the OPEC+ decision to pause output hikes in the first quarter of next year could signal the group’s concern about a potential supply glut.
(Reporting by Amanda Stephenson in Calgary; Editing by Shilpi Majumdar)