Discount on Western Canada Select Widens

(Reuters) – The discount on Western Canada Select to North American benchmark West Texas Intermediate futures widened on Monday.

WCS for December delivery in Hardisty, Alberta, settled at $11.70 a barrel under the U.S. benchmark WTI, according to brokerage CalRock, compared to Friday’s close of $11.65.

• The differential has been trading in a tight band, ranging between $10.25 and $11.70 under WTI, since September 1.
• Analysts point to strong international buying of Canadian crude off the Pacific coast via the Trans Mountain pipeline, especially by China. Buying of Canadian barrels for re-export out of the Gulf Coast has also been stronger than usual in reaction to additional sanctions on Russia.
• Globally, oil prices settled higher on Monday as analysts focused on potential fuel supply disruptions from fresh U.S. sanctions and Ukrainian drone attacks on Russian refineries, although predictions of a crude supply surplus kept gains in check.

Reporting by Amanda Stephenson in Calgary; Editing by Alan Barona

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