Discount on Western Canada Select Narrows

 

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

WCS for July delivery in Hardisty, Alberta settled at minus $12.50 a barrel below the U.S. benchmark WTI, according to brokerage CalRock, compared with minus $15.30 in mid-May.

* The WCS differential has been volatile since the start of the Iran conflict and the effective closure of the Strait of Hormuz, which has sharply reduced crude exports from the region and left energy importers scrambling for alternative supplies.

* Globally, oil prices settled more than 4% higher on Monday after Iran’s Tasnim news agency reported that Tehran had halted indirect negotiations with the U.S. and plans were being made for Iranian forces and their allies to completely block the Strait of Hormuz and potentially disrupt other key shipping routes.29dk2902l

(Reporting by Georgina McCartney in Houston; Editing by Shreya Biswas)

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