Western Canada heavy oil differential narrows within recent range

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

WCS for July delivery in Hardisty, Alberta, settled at $11.30 a barrel under WTI, according to brokerage CalRock, having traded between $11.85 and $11.65 a barrel under WTI on Tuesday.

Canadian heavy crude prices have traded between $12 and $11 a barrel under WTI since early in this month’s trade cycle, supported by concerns about wildfires in Alberta and British Columbia threatening oil supply.

Global oil prices fell 1.5% after the U.S. Federal Reserve projected more interest rate hikes this year, worrying markets about demand just hours after government data showed an unexpected, large build in U.S. crude oil stocks.

(Reporting by Nia Williams; Editing by Rashmi Aich)