The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) deepened on Tuesday:
• WCS for July delivery in Hardisty, Alberta, traded at $13.35 a barrel below WTI, according to brokerage CalRock, having settled at $12.50 a barrel under the benchmark on Monday.
• Canadian heavy crude prices are easing off after tightening last month with the start-up of the 590,000 barrel-per-day (bpd) Trans Mountain pipeline expansion (TMX). One broker said it appeared some market players were disappointed by TMX taking longer than expected to ramp up shipments.
• Oil production continues to surge, with data showing Alberta output set a new April record of 3.93 million bpd, up 11% versus the same month time last year, according to ATB Financial.
• TC Energy shareholders voted in favour of spinning off the Canadian company’s liquids pipeline business on Tuesday, creating a new energy infrastructure firm known as South Bow Corp whose assets include the Keystone oil pipeline.
• Global oil prices fell more than $1 a barrel on scepticism about an OPEC+ decision to boost supply later this year into a global market where demand has already shown signs of weakness.
(Reporting by Nia Williams in British Columbia; Editing by Alan Barona)