The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) widened on Tuesday:
• WCS for July delivery in Hardisty, Alberta, settled at $15.55 a barrel below the WTI, according to brokerage CalRock, having settled at $14.05 a barrel under the benchmark on Friday.
• WCS differentials are expected to tighten given the expansion of the Trans Mountain pipeline.
• About 20 ships loaded crude oil on Canada’s West Coast in the first full month of operation on the newly expanded Trans Mountain pipeline, according to vessel-tracking data on Sunday, slightly below the operator’s forecast.
• While just shy of estimates, analysts say the loadings represent a strong start to operations.
• Global oil prices settled slightly lower as fears of supply disruptions caused by Hurricane Beryl faded throughout the day on Tuesday.
(Reporting by Arathy Somasekhar in Houston; Editing by Alan Barona)