CANADA-CRUDE-Western Canada heavy oil differential narrows on wildfire concerns

Kitco Media
By Reuters
Published:
Updated:
Reuters
May 15 (Reuters) - Western Canada Select (WCS) heavy crude's discount to the benchmark West Texas Intermediate (WTI) narrowed on Monday:


* WCS for June delivery in Hardisty, Alberta, traded $12.40 to $12.80 a barrel under the benchmark, according to brokerage CalRock. On Friday, the Canadian heavy benchmark had ended $12.80 a barrel below WTI.
* Benchmark Canadian heavy crude prices have tightened to multi-month highs on concerns about wildfires in Alberta that forced some producers to shutter production.


* "Definitely production is still impacted and it could get worse," an industry source said.
* Limited refinery turnarounds are expected, keeping crude supplies tight, the source added.
* Prime Minister Justin Trudeau visited Alberta as raging wildfires prompted mass evacuations in Canada's main oil-producing province, where meteorologists expect virtually no rain for about 10 days.
* Global oil prices rose a dollar a barrel on the prospect of tightening supplies in Canada and elsewhere, although recession fears kept the market pressured. (Reporting by Rod Nickel in Winnipeg Editing by Vinay Dwivedi)

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