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Discount on Western Canada Select Widens


These translations are done via Google Translate

The discount on Western Canada Select to North American benchmark West Texas Intermediate futures widened on Thursday.

WCS for December delivery in Hardisty, Alberta, settled at $11.45 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, compared to Tuesday’s close of $11.25.

* The differential is higher than this time last month but remains tight by historical standards.

* WCS pricing continues to be supported by the Trans Mountain pipeline expansion, which has enabled strong buying of Canadian crude off the Pacific coast, especially by China.

* The CEO of Canada’s largest oil company, Canadian Natural Resources, said on a conference call that last year’s opening of the Trans Mountain pipeline expansion has stabilized Western Canada’s oil market to the extent that tight discounts on Canadian heavy oil will continue in the near term. Canadian Natural expects the WCS discount to continue to hover in the US$10-13 per barrel below WTI, Scott Stauth said.

* Oil prices declined on Thursday as investors considered a potential supply glut, as well as weakened demand in the United States, the world’s largest oil consumer.

(Reporting by Amanda Stephenson in Calgary; Editing by David Gregorio)



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