The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures widened on Monday.
WCS for May delivery in Hardisty, Alberta, settled at $16.25 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, compared to $15.55 on Friday.
* The WCS differential has been volatile since the start of the U.S. war on Iran, with competing variables pulling and pushing on relative prices for Canadian heavy crude.
* Historically, the differential tends to widen when oil prices are higher overall and narrow in lower price environments.
* Analysts have 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.
* Oil prices climbed about 4% on Monday after the U.S. military began a blockade of ships leaving Iran’s ports, drawing threatened retaliation from Tehran against its Gulf neighbors after weekend talks on ending the Iran war broke down.
(Reporting by Amanda Stephenson in Calgary; Editing by Maju Samuel)