The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures widened on Monday as global oil prices continued to leap higher due to constrained Middle Eastern supply.
WCS for April delivery in Hardisty, Alberta, settled at $12.65 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, compared with $12 on Friday.
* The discount on heavy Canadian crude has widened by approximately $1 since the U.S.-Israeli war on Iran began.
* With the Strait of Hormuz closed, there is a supply shortage of heavy and sour grades of crude oil in Asia.
* Bids for crude in the U.S. and off Canada’s Trans Mountain pipeline have improved as refiners become more concerned about supply tightness for crude oil, as well as wanting to take advantage of higher product prices and much improved refining margins, said RBN Energy analyst Martin King.
* Alberta oil sands facilities will soon be headed into maintenance season, but King said it is unclear if the operators will delay turnarounds in order to take advantage of what might be temporarily higher prices.
* Oil prices jumped about 7% on Monday to settle at their highest since 2022, after soaring by as much as 29% during the session as Saudi Arabia and other OPEC members cut supplies during the expanding U.S.-Israeli war on Iran.
(Reporting by Amanda Stephenson in Calgary; Editing by Alan Barona)