Canadian heavy crude’s discount to West Texas Intermediate (WTI) was widened on Friday.
Western Canada Select, heavy-blended crude for November delivery to Hardisty, Alberta, last traded at $ 13.10 a barrel below the WTI benchmark, according to NE2 Canada Inc, increasing 40 cents since the sell-off of the yesterday.
The discount on heavy crude had widened since the start of the monthly business cycle last Friday, after reaching its tightest level in five months in late September in anticipation of Enbridge Inc commissioning its Line 3 replacement project. Line 3 pipeline filling began on October 1.
An industry source said there was no clear reason for the widening spread, but the recent sharp rally in US crude prices to more than $ 80 a barrel could explain something. A deeper discount on Canadian barrels offsets part of the increase in the benchmark crude price.
Light synthetic crude from the oil sands for November delivery last closed at $ 1.25 a barrel below US benchmark crude, widening since Thursday’s close of $ 1.00 a barrel below US prices. reference.
World oil prices rose, more than 4% for the week, as a global energy crisis pushed prices to their highest level since 2014 and prompted China to demand more coal production.