Heavy discount narrows as storage pressure eases

May 7, 20201:35 PM Reuters0 Comments

Canadian heavy crude’s discount narrowed versus the U.S. benchmark West Texas Intermediate (WTI) on Thursday, as global oil prices slipped and data showed supply cuts by major oil sands producers tempered storage builds. Crude oil inventories in Western Canada stood around 33.8 million barrels as of April 24, 5.7 million barrels lower than levels in January and about 3.3 million below year-ago levels, data provider Genscape said. Western Canada Select (WCS) heavy blend crude for June delivery in Hardisty, Alberta, traded at $5.35 per barrel below WTI, according to NE2 Canada Inc, narrower than Wednesday’s settle of $5.50 under. Pipeline operator Enbridge Inc estimated oil curtailments in Western Canada would reach 1 million to 1.5 million barrels per day in the second quarter. Brent futures fell 26 cents, or 0.9%, to settle at $29.46 a barrel, while U.S. WTI crude lost 44 cents, or 1.8%, to settle at $23.55.