Western Canada Select discount Edges Wider as Wildfires Ease

Western Canada Select (WCS) heavy crude’s discount to the benchmark West Texas Intermediate (WTI) inched wider on Wednesday.

WCS for June delivery in Hardisty, Alberta, ended the day at $13.45 a barrel under the benchmark, according to brokerage CalRock. On Tuesday the Canadian heavy benchmark settled at $13.40 a barrel under WTI.

The heavy crude benchmark has tightened this week on concerns about wildfires in Alberta, one trader said, even though so far only light oil and gas production has been impacted.

The wildfires eased on Wednesday, allowing some producers to reopen shuttered production, but hot dry conditions are forecast over the weekend and officials warned fire activity could intensify.

Suncor Energy said a worker was injured in a bear attack at the company’s oil sands base plant in northern Alberta, the latest in a series of safety incidents at the Canadian oil producer.

Global oil prices fell by more than a dollar a barrel, ending a three-day rally, as economic data suggested the U.S. Federal Reserve might hike interest rates further.

That put the outright price of WCS at just over $59 a barrel.