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WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy Services
WEC - Western Engineered Containment
Hazloc Heaters
Copper Tip Energy

Heavy discount widens, remains in trading range

The differential on Canadian heavy crude widened on Friday, remaining in its recent trading range as government-ordered curtailments continued to underpin the market.

* Western Canada Select (WCS) heavy blend crude for September delivery in Hardisty, Alberta, traded at $13.15 per barrel below West Texas Intermediate (WTI) oil, according to Net Energy Exchange. On Thursday, WCS for September delivery settled at $12.35 a barrel below WTI crude futures.

* The differential is unlikely to widen much at current levels of government-ordered curtailment, a Calgary-based industry source said.

* A second source said weakness in Gulf Coast pricing could be impacting the differential.

* The government of Canada’s main crude-producing province, Alberta, eased oil production curtailments for September last week, setting the new limit at 3.76 million barrels per day (bpd), a 25,000-bpd increase from August.

* Light synthetic crude from the oil sands for September delivery traded at $2.65 a barrel over WTI, with the premium expanding from Thursday’s settle of $2.50 per barrel over the benchmark.

* Oil prices rallied nearly 3% on Friday, a partial rebound following their biggest daily drop in several years on Thursday.

* Canadian pipeline company Enbridge Inc said it would invite bids for contracted space on its Mainline system, as shippers compete to move oil on the country’s congested pipeline networks.

* Canada crude oil exports to the United States fell 430,000 barrels per day to 3.49 mln bpd in June, Statistics Canada reported.

* Canadian crude producer Imperial Oil Ltd is urging the Alberta government to further reduce its limits on output, saying that bloated inventories have dwindled enough.

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