off-the-wire

CANADA-CRUDE-Western Canada Select discount narrows as new trade begins

Kitco Media
By Reuters
Published:
Updated:
Reuters
March 1 (Reuters) - Western Canada Select (WCS) crude's discount to the benchmark West Texas Intermediate (WTI) narrowed on Wednesday, the first day of the new trade cycle:


* WCS for March delivery in Hardisty, Alberta, strengthened from $15.75 to $15.10 a barrel under WTI, according to brokerage CalRock.


* That was the tightest differential since May 2022.
* WCS has been strengthening steadily this year as U.S. refinery demand for heavy barrels picks up following a weak 2022. Market players said the outlook for Canadian crude is also being supported by the opening of a new refinery in Mexico later this year and the prospect of the Trans Mountain pipeline expansion coming into service in early 2024. "It seems like we're on a good trajectory for the first time in six months," said Rory Johnston, founder of the Commodity Context newsletter.
* Global oil prices settled up slightly as signs of ample supply, including growing U.S. crude inventories, offset increasing hopes for higher demand after a jump in manufacturing in top crude importer China. (Reporting by Nia Williams Editing by Chris Reese)

Messaging: nia.williams.thomsonreuters.com@reuters.net))
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