The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures widened on Wednesday.
WCS for May delivery in Hardisty, Alberta, settled at $16.60 a barrel, below the U.S. benchmark WTI, according to brokerage CalRock, compared to $16.50 on Tuesday.
* The WCS differential has been volatile since the start of the U.S. war on Iran and the effective closure of the Strait of Hormuz, which has sharply reduced crude exports from the region and left energy importers scrambling for alternative supplies.
* Historically, the WCS differential tends to widen when oil prices are higher overall and narrow in lower-price environments, as greater demand for oil means more competition for space on Canada’s crude export pipelines.
* Global oil prices held steady on Wednesday as ongoing worries about supply disruptions offset comments by U.S. President Donald Trump that the war on Iran could be over soon.
(Reporting by Amanda Stephenson in Calgary; Editing by Alan Barona)