The discount on Canadian heavy crude versus the West Texas Intermediate (WTI) benchmark widened slightly on Tuesday, while synthetic crude edged higher as the end of this month’s volatile trade window neared.
Western Canada Select (WCS) heavy blend for April delivery in Hardisty, Alberta, settled at $13.30 a barrel below WTI, according to NE2 Canada Inc, 15 cents wider than Monday’s settle of $13.15 a barrel below the benchmark.
The monthly Canadian crude trading window, which lasts from the first of each month until the day before pipeline nominations are due, will wrap up on Thursday.
A Marathon pipeline leak in Illinois over the weekend has been repaired, and shipments restarted, but it contributed to slightly weaker differentials as crude flows were disrupted, one industry source said.
Light synthetic crude from the oil sands for April delivery settled at $6.00 a barrel over WTI, climbing from Monday’s settle of $5.85 a barrel over the benchmark.
Last week, synthetic prices surged to $6.85 a barrel over WTI as traders scrambled for crude amid widespread market turmoil following Russia’s invasion of Ukraine.
Canadian crude prices are expected to be supported throughout the second quarter as annual maintenance work in the oil sands will shutter roughly 5% of Canada’s crude output.
Global oil prices tumbled more than 6% to their lowest in almost three weeks as supply disruption fears eased and surging COVID-19 cases in China spurred demand concerns.
You can read more of the news on source
