Heavy discount widens as top producers debate output cuts
Canadian heavy crude’s discount widened versus the U.S. benchmark West Texas Intermediate (WTI) on Thursday.
Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta, traded at $9.50 per barrel below WTI, according to NE2 Canada Inc, wider than Wednesday’s settle of $8.60 under.
Light synthetic crude from the oil sands was trading at $3.85 below WTI after Wednesday’s settle of $2.25 under.
Total U.S. refined product demand is down 22% against the five-year historical average compared to 31% when demand bottomed in April, TD Securities analyst Menno Hulshof said in a note.
Canadian oil producers sideswiped by economic damage from the coronavirus pandemic have received no federal loans, seven weeks after the first lending program was announced, government and industry officials said on Thursday.
Global oil prices edged up as investors awaited a decision from top crude producers on whether to extend record output cuts.