Heavy oil differential holds steady

The discount on benchmark heavy Canadian crude versus West Texas Intermediate was steady on Tuesday.

Western Canada Select heavy blend crude for October delivery traded at $20.35 a barrel under WTI, according to NE2 Canada, unchanged from Friday’s settlement. The market was closed on Monday.

WCS has traded around $20 a barrel below U.S. futures for much of the summer, pressured by the release of oil from the U.S. Strategic Petroleum Reserve.

Light synthetic crude from the oil sands for October delivery traded around $6.20 a barrel over U.S. crude.

Global oil prices fell as concerns returned about the prospect of more interest rate hikes and COVID-19 lockdowns weakening fuel demand, reversing a two-day rally on OPEC+’s first output target cut since 2020.