Discount on Western Canada Select Unchanged

The discount on Western Canada Select to North American benchmark West Texas Intermediate futures was unchanged on Friday.

WCS for November delivery in Hardisty, Alberta, settled at $11 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, flat on Thursday’s close.* Canadian pipeline operator Enbridge’s Mainline system — which transports oil from Alberta to various markets in Canada and the U.S. — is not at apportionment in October. Apportionment is an industry term for the rationing that occurs when demand for pipeline space exceeds capacity.

* The increase in seasonal capacity this month on the Mainline is due to less planned maintenance on the system, an Enbridge spokesperson said.

* The WCS discount will likely continue to trade close to its current range, or even tighten this autumn, said RBN Energy analyst Martin King. Midwest refining runs are at record highs for this time of year, helping to keep the WCS discount seasonally narrow, he said.

* Demand was strong in September for Canadian crude loaded off the Trans Mountain pipeline, which carries Alberta oil to the B.C. coast for export overseas, a trend that is expected to continue in October.

* Oil prices settled higher on Friday but posted a weekly loss of 8.1% after news of potential increases to OPEC+ supply.

(Reporting by Amanda Stephenson in Calgary; Editing by Tasim Zahid)