The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures was steady on Thursday.
WCS for March delivery in Hardisty, Alberta, settled at $15.75 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, steady on Wednesday’s close.
* The last time the discount on Canadian heavy crude consistently traded this low was prior to the opening of the Trans Mountain pipeline expansion in the spring of 2024, said Enverus analyst Michael Berger.
* Investors are watching for the potential for an increase in Venezuelan barrels to compete with Canadian heavy oil of similar quality in the U.S. Gulf Coast over the longer term.
* The discount could begin to narrow heading into the second quarter as paving season ramps up, Berger said, since Canadian bitumen is used to produce asphalt concrete.
* Pipeline company Enbridge reports its earnings on Friday, and Berger said the market will be watching for commentary on current crude export capacity and any fresh details about a planned expansion of its Mainline pipeline network.
* Oil prices dropped on Thursday due to falling demand, retreating fears of renewed Middle East conflict and expected increases in supply.
(Reporting by Georgina McCartney in Houston; Editing by Vijay Kishore)