Heavy discount widens as oil glut grows

Canadian heavy crude’s discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Wednesday, as rising inventories offset hopes for a recovery in fuel demand that has been pummeled by the coronavirus pandemic.Western Canada Select (WCS) heavy blend crude for June delivery in Hardisty, Alberta, traded at $5.50 per barrel below WTI, according to NE2 Canada Inc, wider than Tuesday’s settle of $4.85 under.

U.S. crude stocks and distillate inventories rose while gasoline inventories fell, the Energy Information Administration said on Wednesday.

U.S. oil futures fell 57 cents to settle at $23.99 a barrel and Brent crude settled down $1.25 at $29.72 per barrel.

Canada’s second-largest oil producer, Suncor Energy Inc , late on Tuesday deepened spending cuts, suspended its share repurchase program and cut its quarterly dividend by 55%.