Western Canada heavy oil differential edges wider

Categories: Canada

Western Canada Select (WCS) heavy crude’s discount to the benchmark West Texas Intermediate (WTI) widened slightly on Monday:

WCS for July delivery in Hardisty, Alberta, settled at $11.90 a barrel under WTI, according to brokerage CalRock, having closed at $11.50 a barrel under WTI on Friday.

Canadian heavy crude prices remain relatively strong compared to the last year. The differential to U.S. crude has narrowed in recent weeks due to seasonal maintenance in the oil sands and concerns about the threat of wildfires in northern British Columbia and Alberta.

TC Energy said two compressor stations and a gas storage facility near wildfires in Edson had to be shut down on Saturday.

Oil prices fell by around $3 a barrel after analysts highlighted rising global supplies and concerns about demand growth just ahead of key inflation data and a U.S. Federal Reserve meeting later this week.

(Reporting by Nia Williams Editing by Shri Navaratnam)

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