Heavy Oil Differential Widens after Recent Trend Narrower – Canadian Energy News, Top Headlines, Commentaries, Features & Events – EnergyNow

The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) widened on Monday.

WCS for May delivery in Hardisty, Alberta, settled at $13.75 per barrel below WTI, according to brokerage CalRock, having settled at $13.00 a barrel below the benchmark on Friday.

Overall Canadian heavy crude differentials have trended tighter in recent weeks in anticipation of the long-awaited Trans Mountain pipeline expansion project starting to ship crude. Trans Mountain said on Wednesday it would start operating on May 1.

β€œWe’re holding pretty steady and when we actually get TMX up and running, differentials in Hardisty will probably get even tighter,” said Rory Johnston, founder of the Commodity Context newsletter.

Analysts at brokerage Eight Capital said in a research note they expected the WCS differential to narrow to single digits in the second quarter of 2024.

Global oil prices fell, ending a multi-session rally after Israel reduced its troops in southern Gaza and began a fresh round of ceasefire talks with Hamas.

(Reporting by Nia Williams in British Columbia; Editing by Alan Barona)

Share This:

Next Article

Β 


More News Articles