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Discount on Western Canada Select Heavy Crude Narrows


These translations are done via Google Translate
The discount of Western Canada Select (WCS) heavy crude to the North American benchmark West Texas Intermediate futures (WTI) narrowed on Monday, against a backdrop of falling global oil prices and ongoing U.S. trade policy uncertainty.

* WCS for April delivery in Hardisty, Alberta, settled at $11.55 a barrel under WTI, according to brokerage CalRock, after having settled at $12.15 under the U.S. benchmark on Friday.

* Last Tuesday saw U.S. President Donald Trump apply 25% tariffs to most Canadian goods and 10% to Canadian energy products.

* Then on Thursday, Trump suspended the tariffs for an additional month, though a White House official said not all energy products would be covered by the exemption.


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* Many Canadian crude shippers have not gone through the paperwork-heavy and time-intensive process to become compliant under United States-Mexico-Canada Agreement rules, said Rory Johnston, an energy analyst and founder of the Commodity Context newsletter.

GLJ

* He said with a 10% tariff on the line, the portion of Canadian crude going through the USMCA certification process should increase.

* Canada exports approximately 4 million barrels of oil per day, about 90% of its total crude exports, to the United States.

* Globally, oil prices were down 1% on Monday on fears that U.S. tariffs on Canada, Mexico and China would slow economies around the world and slash energy demand while OPEC+ ramps up its supply.

(Reporting by Amanda Stephenson in Calgary; Editing by Alan Barona)



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