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

Heavy discount widens slightly as monthly trading cycle begins

The discount on Canadian heavy crude widened slightly versus U.S. benchmark West Texas Intermediate (WTI) crude on Monday, the start of a new monthly trading cycle.Western Canada Select (WCS) heavy blend crude for January delivery in Hardisty, Alberta, was trading at $20.90 per barrel below WTI, according to NE2 Canada Inc, compared with Friday’s settle of $20.75 below in thin trading.

The heavy differential remained wide amid large inventories following a Canadian railway strike that ended last week and with the Keystone pipeline still operating at reduced pressure, a Canadian trading source said.

Light synthetic crude from the oil sands traded even with WTI in thin volume, compared with Friday’s settle of $2.60 under.

Commercial service on the Canadian portion of Enbridge Inc’s Line 3 pipeline replacement, which carries light oil, began on Sunday and is moving an additional 100,000 barrels per day, Alberta Energy Minister Sonya Savage said in a statement.

Canadian oil and gas producer Husky Energy Inc said that it expected “real relief” from Alberta’s oil curtailments could come in the first quarter.

Oil futures gained about 1% on hints the Organization of the Petroleum Exporting Countries (OPEC) and its allies may agree to deepen output cuts at a meeting this week and as rising manufacturing activity in China suggested stronger demand.

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