Heavy oil discount widens marginally | BOE Report

Heavy oil discount widens marginally | BOE Report

The discount on Western Canada Select (WCS) heavy crude versus North American benchmark West Texas Intermediate (WTI) edged slightly wider on Wednesday. WCS for October delivery in Hardisty, Alberta, traded between $18.30 and $18.10 a barrel under WTI, according to brokerage CalRock, having settled at $18.00 a barrel under the benchmark on Tuesday.

Differentials on Canadian heavy crude have been edging wider over the last month, mainly due to expectations of reduced demand from U.S. refiners as turnaround season starts, according to Rory Johnston, founder of the Commodity Context newsletter.

However, global demand for heavy sour crude remains strong, Johnston added.

Global oil prices settled higher, reversing early declines as traders anticipated further draws on U.S. crude oil inventory following extended production cuts in Saudi Arabia and Russia.

(Reporting by Nia Williams in British Columbia; Editing by Shailesh Kuber)


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