Discount on Western Canada Select Widens

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

WCS for May delivery in Hardisty, Alberta, settled at $15.55 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, compared with $14.90 on Wednesday.

* The WCS differential has been volatile since the start of the U.S. war on Iran. Early on, disruptions in global supplies of heavy crude led to a narrowing in the discount.

* But Wood Mackenzie analyst Dylan White said planned oil releases from the U.S. strategic reserve throughout April and May, which are aimed at addressing Iran-related supply pressures, are likely contributing to the recent widening of the differential.29dk2902l

* He said there is room for that widening to continue, but acknowledged the market is in flux. “Especially right now with this tenuous ceasefire, the whole market is playing a bit of wait and see,” White said.

* Global oil prices closed up 1% but settled below $100 for the second straight session on Thursday in volatile trading as a fragile Middle East ceasefire held and Israel said it would start direct negotiations with Lebanon as soon as possible.

(Reporting by Amanda Stephenson in Calgary; Editing by Leroy Leo)

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