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CANADA-CRUDE-Heavy discount narrows slightly, pipeline outage in focus

Published 2020-09-04, 03:39 p/m
© Reuters.
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Sept 4 (Reuters) - Canadian heavy crude's discount versus West Texas Intermediate (WTI) narrowed slightly on Friday, as prices were supported by a pipeline leak's impact on oil production.

* Western Canada Select (WCS) heavy blend crude for October delivery in Hardisty, Alberta, traded at $8.75 per barrel below WTI, according to NE2 Canada Inc. It settled the previous day at $9 under.

* Imperial Oil Ltd IMO.TO this week shut all production at its 220,000-barrel-per-day (bpd) Kearl oil sands site in Canada due to an outage of part of the Polaris pipeline in Alberta following a spill. The pipeline outage is mostly factored into the heavy differential now, but any update on the timing of restarting it may sway the market, a Calgary-based trader said.

* Canadian oil sands companies have been restoring production that had been shut in after the coronavirus pandemic spread and curbed demand from refineries.

* Light synthetic oil from the oil sands for October delivery traded at $2.20 below WTI, a tad narrower than the previous day's settle of $2.25.

* Global oil prices fell more than 3% and posted their biggest weekly decline since June as fears of a slow economic recovery from the COVID-19 pandemic compounded worries about weak oil demand. O/R

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