Heavy discount widens as lockdown restrictions ease

May 5, 20201:20 PM

Southern Alberta Oil WellCanadian heavy crude’s discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Tuesday, as moves by some countries to ease lockdown measures propelled global oil prices while data showed Canadian crude oil exports to the U.S. fell. Canadian oil exports to the United States dropped to 3.74 million barrels per day (bpd) in March, down 130,000 bpd from 3.87 million bpd in February, Statistics Canada said on Tuesday. Western Canada Select (WCS) heavy blend crude for June delivery in Hardisty, Alberta, traded at $4.80 per barrel below WTI, according to NE2 Canada Inc, wider than Monday’s settle of $3.85 under. Brent crude rose $3.77, or 13.9%, to settle at $30.97 a barrel. WTI gained $4.17, or 20.5%, to settle at $24.56 a barrel. Cuts to Canadian production reached an estimated 1 million bpd, consultancy Rystad Energy said in a note. Canadian oil sands producer MEG Energy plans to curtail output by 67% from June, TD Securities said.