Heavy discount narrows, stays in tight range

Canadian heavy crude’s discount narrowed versus West Texas Intermediate (WTI) on Monday, remaining in a narrow range despite lower inventories.Crude oil inventories in Western Canada stood at 29.3 million barrels, or 45% of operational capacity, as of May 29, data provider Genscape said.

Oil production in Canada’s Saskatchewan province rebounded to 470,000 barrels per day in May, up 71,000 bpd from April, analysts at Tudor, Pickering, Holt & Co said.

Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $7.60 per barrel below WTI, according to NE2 Canada Inc, narrower than Friday’s settle of $8.30 under.

The Canadian government-owned Trans Mountain pipeline restarted following an oil spill at a pump station in British Columbia, operator Trans Mountain Corp said late Sunday.

Global oil prices rose, supported by signs of recovering fuel demand and compliance by OPEC+ members with a production cut deal