The discount on Canadian heavy crude versus the West Texas Intermediate benchmark deepened on Monday, while synthetic crude’s premium dipped from recent highs.
Western Canada Select heavy blend crude for June delivery in Hardisty, Alberta, last traded at $14.40 a barrel below WTI, according to NE2 Group, widening from Friday’s settlement price of $13.80 a barrel below the benchmark.
Light synthetic crude from the oil sands for June delivery last traded at $7.00 a barrel over WTI, falling 75 cents from the previous settlement, which was the strongest premium in nine years.
Traders are closely watching maintenance turnarounds at oil sands upgraders and U.S. and Canadian refineries, which are impacting supply and demand balances.
Global oil prices sank about 6% alongside equities, as continued coronavirus-related lockdowns in China, the top oil importer, fed worries about the demand outlook.