Canadian heavy crude’s differential to West Texas Intermediate (WTI) narrowed on Friday, but remained at relatively wide levels.
Western Canada Select heavy blend crude for December delivery in Hardisty, Alberta, was trading at $19.85 per barrel below the WTI benchmark at 3:17 p.m. North America eastern time, according to NE2 Canada Inc, narrower than Thursday’s settle of $20.50 per barrel below the benchmark.
WCS differentials have reached some of their widest levels since the pandemic began due to stronger Canadian production, heavier OPEC barrels returning to the market and high natural gas prices pushing up the cost associated with heavy crudes, said Rory Johnston, managing director of Price Street.
Light synthetic crude from the oil sands for December delivery last traded at $4 per barrel below the U.S. crude benchmark, widening from the previous day’s settle of $3.30 below.
Oil prices fell, wiping out gains from the previous session, on worries that the U.S. Federal Reserve will accelerate plans to boost interest rates to tame inflation.