The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures widened on Wednesday as the International Energy Agency proposed a record release of oil reserves to try to rein in energy prices.
WCS for April delivery in Hardisty, Alberta, settled at $13.15 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, compared with $12.75 on Tuesday.
* Oil prices settled up nearly 5% on Wednesday as fresh attacks on ships in the Strait of Hormuz worsened supply disruption fears, and analysts said the International Energy Agency’s proposal for a record release of oil reserves is inadequate to ease those worries.
* The Canadian government said Wednesday it is looking at options to increase its crude production to help global efforts to stabilize oil prices in the face of the U.S.-Israeli war on Iran, but an industry group said Canada is already producing at record volumes and has minimal ability to increase output in the short term.
(Reporting by Amanda Stephenson in Calgary; Editing by Alan Barona)