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CANADA-CRUDE-Heavy discount narrows, monthly trading cycle begins

Published 2020-09-01, 04:05 p/m
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Sept 1 (Reuters) - Canadian heavy crude's discount versus West Texas Intermediate (WTI) narrowed on Tuesday, the first day of the monthly trading cycle.

* Western Canada Select (WCS) heavy blend crude for October delivery in Hardisty, Alberta, traded at $9.85 per barrel below WTI, according to NE2 Canada Inc. It settled the previous day at $10.60 under.

* Heavy oil prices are strong due to reduced output in Venezuela and Mexico, and shut-ins in Canada, a Canadian industry source said. Road repair season, during which asphalt is in high demand, has also kept prices firm, he said.

* An RBC Capital Markets survey of investors and executives showed 62% of respondents see the WCS-WTI differential averaging between $11 and $15 per barrel for the balance of 2020.

* Light synthetic oil from the oil sands for October delivery traded at $2.50 below WTI, after settling the previous day at $2.75 under.

* Global oil prices rose, reversing overnight losses as better-than-expected U.S. manufacturing activity data spurred hope for a post-pandemic economic recovery, and as analysts forecast a sixth weekly drawdown in U.S. crude inventories. O/R

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