Heavy crude discount narrows as new trade cycle gets underway

The discount on Canadian heavy crude versus the West Texas Intermediate (WTI) benchmark narrowed on Tuesday, the first day of the monthly Canadian crude trading window.

Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, last traded at $19.90 a barrel below WTI, according to NE2 Group, narrowing $1.10 from the previous settlement.

Light synthetic crude from the oil sands for August delivery traded at $7.50 a barrel over WTI, according to an industry broker. Synthetic crude prices are expected to weaken in coming weeks after being at record highs for much of the summer due to annual maintenance on upgraders in the oil sands.

Global oil futures edged up less than 1% ahead of a meeting of OPEC+ producers this week that may not lead to a further boost in crude supply amid concerns a possible global recession could limit energy demand.