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CANADA-CRUDE-Heavy oil differential widens

CANADA-CRUDE-Heavy oil differential widens

Reuters · 09/13/2022 17:41
CANADA-CRUDE-Heavy oil differential widens

- The discount on benchmark heavy Canadian crude versus West Texas Intermediate deepened on Tuesday:

* Western Canada Select heavy blend crude for October delivery changed hands at $21.00 a barrel under WTI, market sources said, widening around 15 cents slightly from Monday.

* WCS has been under pressure for much of the summer as a result of the release of predominantly sour crude from the U.S. Strategic Petroleum Reserve (SPR).

* One Calgary-based trader attributed the recent widening to seasonal weakness, expectations of a build in Canadian storage inventories and concerns about a possible U.S. rail strike.

* Global oil prices ended 1% lower, reversing earlier gains as U.S. consumer prices unexpectedly rose in August, giving cover for the U.S. Federal Reserve to deliver another hefty interest rate increase week.O/R

(Reporting by Nia Williams; Editing by Maju Samuel)

((.williams@thomsonreuters.com ; +1 403 607 9846; Reuters Messaging: