Sept 4 (Reuters) - The discount on Western Canada Select
to North American benchmark West Texas Intermediate futures
widened on Thursday.
WCS for October delivery in Hardisty, Alberta, settled at
$11.55 a barrel under the U.S. benchmark WTI, according to
brokerage CalRock, compared with $11.45 a barrel discount on
Wednesday.
* WCS discounts had already widened in August, in part due
to BP's
440,000-barrel-per-day refinery in Whiting, Indiana,
being affected by flooding after a severe thunderstorm. The
refinery is often the single largest purchaser of Canadian
crude.
* Another factor behind the summer's widening trend is the
threat
of competition from Venezuelan heavy crude exports to the U.S.
Gulf Coast, which resumed last month due to easing of U.S.
sanctions.
* WCS discounts narrowed slightly at the start of September
amid
the restart of BP's Whiting unit and strong buying in Asia, said
Wood Mackenzie analyst Dylan White.
* But WCS discounts will likely remain wider in the second
half of
the year than they were in the second quarter, as strong Western
Canadian production should drive high utilization along existing
pipeline routes, White said.
* Global oil prices eased about 1% to a two-week low on
Thursday
on a surprise build in U.S. crude inventories last week and
expectations that OPEC+ producers will increase output targets
at a meeting this weekend.