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CANADA-CRUDE-Discount on Western Canada Select narrows
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CANADA-CRUDE-Discount on Western Canada Select narrows
Jun 6, 2025 2:54 PM

June 6 (Reuters) - The discount on Western Canada Select

(WCS) to the North American benchmark West Texas Intermediate

(WTI) futures narrowed on Friday.

WCS for July delivery in Hardisty, Alberta, settled at $8.85

a barrel under the U.S. benchmark WTI, according to brokerage

CalRock, after having settled at $9.10 under the U.S. benchmark

on Thursday.

* Global crude prices rose more than $1 a barrel on Friday,

posting their first weekly gain in three weeks after a favorable

U.S. jobs report and resumed trade talks between the U.S. and

China, raising hopes for growth in the world's two largest

economies.

* Stronger U.S. demand means higher U.S. refinery runs and

boosts

demand for Canadian heavy crude, said Rory Johnston, energy

analyst and founder of the Commodity Context newsletter.

* The WCS discount had narrowed early in the week as

wildfires

burning in Canada's oil-producing province of Alberta prompted

several oil sands operations to evacuate workers as a

precaution. About 344,000 barrels per day of production, or

about 7% of Canada's average daily crude production, was

disrupted as a result.

* But concerns about long-term supply impacts appeared to

lessen

mid-week. Canada's largest crude producer, Canadian Natural

Resources ( CNQ ), restarted operations at its Jackfish 1 site

and analysts said they expect Cenovus Energy's ( CVE )

Christina Lake oil sands site to also resume full operations

soon. However, Cenovus has not yet confirmed when it will

restart Christina Lake production.

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