The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures widened on Thursday.
WCS for May delivery in Hardisty, Alberta, settled at $15.55 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, compared with $14.90 on Wednesday.
* The WCS differential has been volatile since the start of the U.S. war on Iran. Early on, disruptions in global supplies of heavy crude led to a narrowing in the discount.
* But Wood Mackenzie analyst Dylan White said planned oil releases from the U.S. strategic reserve throughout April and May, which are aimed at addressing Iran-related supply pressures, are likely contributing to the recent widening of the differential.
* He said there is room for that widening to continue, but acknowledged the market is in flux. “Especially right now with this tenuous ceasefire, the whole market is playing a bit of wait and see,” White said.
* Global oil prices closed up 1% but settled below $100 for the second straight session on Thursday in volatile trading as a fragile Middle East ceasefire held and Israel said it would start direct negotiations with Lebanon as soon as possible.
(Reporting by Amanda Stephenson in Calgary; Editing by Leroy Leo)