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CANADA-CRUDE-Heavy oil discount narrows as wildfire threatens oil sands hub
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CANADA-CRUDE-Heavy oil discount narrows as wildfire threatens oil sands hub
May 14, 2024 4:44 PM

May 14 (Reuters) - The discount on Western Canada Select

(WCS) heavy crude versus the North American benchmark West Texas

Intermediate (WTI) narrowed slightly on Tuesday:

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

$12.50 a barrel below WTI, according to brokerage CalRock,

having settled at $12.75 a barrel below the benchmark on Monday.

* Around 6,000 people in four suburbs of the oil sands hub

of Fort McMurray were ordered to evacuate on Tuesday as a

wildfire approached the remote northern Alberta city.

* There were no reports of interruptions to oil sands

operations but market participants are concerned, one broker

said. In 2016, a wildfire destroyed large parts of Fort McMurray

and forced more than a million barrels per day (bpd) of

production to shut in.

* Canadian heavy crude is also gaining support from the

start-up of the 590,000 bpd Trans Mountain pipeline expansion

(TMX), although the first oil tanker is not expected to load at

Westridge dock in the Port of Vancouver until the second half of

May.

* Global oil prices settled lower, after U.S. data stoked

concerns that interest rates may stay high, but potential risks

to supply from Middle East tensions and the wildfires in Canada

put a floor under prices.

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