The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures was unchanged on Thursday, as global oil prices surged to their highest point since 2022.
WCS for April delivery in Hardisty, Alberta, settled at $13.15 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, steady on Wednesday’s close.
* The war in Iran has disrupted global supply of medium and heavy sour barrels, contributing to tighter spreads for heavy crude this month.
* There could be additional demand for Canadian crude to be exported to Asia via the Trans Mountain pipeline, said Wood Mackenzie analyst Dylan White, but freight rates are very high. There is also market uncertainty about the degree to which the International Energy Agency’s proposed record release of oil reserves will address the global supply crisis.
* “With all of that going on, we would certainly expect volatility in WTI-WCS, as well as crude differentials across the board,” said Wood Mackenzie analyst Dylan White.
* Global oil prices settled up about 9% on Thursday, at their highest in nearly four years, as Iran stepped up attacks on oil and transport facilities across the Middle East, and the country’s supreme leader vowed to keep the vital Strait of Hormuz shut.
(Reporting by Amanda Stephenson in Calgary; Editing by Alan Barona)