The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) widened on Monday:
* WCS for November delivery in Hardisty, Alberta, settled at $23.45 a barrel under WTI, according to brokerage CalRock, weakening from Friday’s close of $23.00 a barrel under WTI.
* Canadian heavy crude has been steadily widening in recent weeks, mainly due to a busy refinery maintenance season in the U.S. and Canada that will curb oil demand.
* Differentials should start to tighten again in coming months as refinery turnarounds wrap up and Canada’s Trans Mountain pipeline expansion project starts linefill, expected sometime in the first quarter of 2024, said RBN Energy analyst Martin King.
* Global oil futures fell more then $1 a barrel as expectations rose the U.S. and Venezuela could soon reach a deal easing sanctions on Venezuelan crude exports, while traders said the Israel-Hamas conflict did not appear to threaten oil supplies in the short term.
* The outright price of WCS was just over $63 a barrel.
(Reporting by Nia Williams in British Columbia; Editing by Shailesh Kuber)