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CANADA-CRUDE-Heavy oil differential widens after recent trend narrower
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CANADA-CRUDE-Heavy oil differential widens after recent trend narrower
Apr 8, 2024 4:07 PM

April 8 (Reuters) - The discount on Western Canada

Select (WCS) heavy crude versus the North American benchmark

West Texas Intermediate (WTI) widened on Monday:

* WCS for May delivery in Hardisty, Alberta, settled at

$13.75 per barrel below WTI, according to brokerage CalRock,

having settled at $13.00 a barrel below the benchmark on Friday.

* Overall Canadian heavy crude differentials have trended

tighter in recent weeks in anticipation of the long-awaited

Trans Mountain pipeline expansion project starting to ship

crude. Trans Mountain said on Wednesday it would start

operating on May 1.

* "We're holding pretty steady and when we actually get TMX

up and running, differentials in Hardisty will probably get even

tighter," said Rory Johnston, founder of the Commodity Context

newsletter.

* Analysts at brokerage Eight Capital said in a research

note they expected the WCS differential to narrow to single

digits in the second quarter of 2024.

* Global oil prices fell, ending a multi-session rally after

Israel reduced its troops in southern Gaza and began a fresh

round of ceasefire talks with Hamas.

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