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CANADA-CRUDE-Heavy oil discount steady as lower refinery demand offsets support from TMX
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CANADA-CRUDE-Heavy oil discount steady as lower refinery demand offsets support from TMX
Jul 3, 2024 2:50 PM

July 3 (Reuters) - The discount on Western Canada Select

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

Intermediate (WTI) was steady on Wednesday amid subdued trading

ahead of the U.S. Independence Day holiday:

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

$15.55 a barrel below WTI, according to brokerage CalRock, flat

on the day.

* Gulf demand for Canadian crude has softened over the last

couple of weeks, said RBN Energy analyst Martin King on

Wednesday.

* In refining, analysts pointed to scheduled maintenance at

BP's 435,000-barrel-per-day (bpd) Whiting, Indiana,

scheduled to start this month and last until September. Whiting

is a major consumer of Canadian heavy crude.

* However the expansion of the Trans Mountain pipeline will

likely provide some support to WCS differentials, with about 20

ships loading crude oil on Canada's West Coast in the first full

month of operation on the newly expanded pipeline.

* While just shy of estimates, analysts say the loadings

represent a strong start to operations.

* Global oil prices gained about 1% after a

larger-than-expected decline in U.S. crude stocks, but gains

were capped by concerns about rising global inventories in thin

trading ahead of the U.S. Independence Day holiday.

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