Heavy crude differential edges wider


Railcars holding crude oil

Canadian heavy crude’s discount to West Texas Intermediate (WTI) widened slightly on Wednesday.

Western Canada Select heavy blend crude for November delivery in Hardisty, Alberta, settled at $12.70 per barrel below the WTI benchmark, according to NE2 Canada Inc, compared with Tuesday’s settlement of $12.60 a barrel below the benchmark.

The discount on heavy crude has been inching wider since the start of this month’s trade cycle, retreating from recent five-month highs hit in anticipation of Enbridge Inc bringing its Line 3 replacement project into service.

Linefill on Line 3 started on Friday.

Light synthetic crude from the oil sands for November delivery settled at 70 cents a barrel below U.S. benchmark crude, widening from Tuesday’s settle of 15 cents per barrel under the WTI benchmark.

Global oil prices dropped nearly 2%, pulling back from multi-year highs, as an unexpected rise in U.S. crude inventories prompted buyers to take a breather after recent torrid gains.

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