Canadian heavy crude’s discount to West Texas Intermediate (WTI) held steady on Friday, the last day of the monthly Canadian crude trading window.
Western Canada Select heavy blend crude for November delivery in Hardisty, Alberta, last traded at $14.75 per barrel below the U.S. West Texas Intermediate (WTI) benchmark, according to NE2 Canada Inc, unchanged from the previous day’s settlement.
Friday was the final day of the two-and-a-half week Canadian crude trade window, lasting from the first of each month until the day before pipeline nominations are due, in which the bulk of trading takes place.
The discount on Canadian heavy crude has widened this month after hitting its narrowest level in five months in late September in anticipation of Enbridge Inc bringing its Line 3 replacement project into service. Linefill on the Line 3 pipeline started on Oct. 1.
Strong U.S. crude prices, which WCS trades at a discount to, mean the outright price of Canadian oil is around its highest level since 2014.
Global oil prices settled at a three-year high above $85 a barrel, boosted by forecasts of a supply deficit in the next few months as the easing of coronavirus-related travel restrictions spurs demand.
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