Heavy Oil Discount Steadies

The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) held steady on Monday:* WCS for June delivery in Hardisty, Alberta, settled at $12.75 a barrel below WTI, according to brokerage CalRock, unchanged from Friday’s closing price.

* Canadian heavy crude has strengthened this month as the 590,000 barrel per day (bpd) Trans Mountain pipeline expansion (TMX) started commercial operations, although the first oil tanker is not expected to load at Westridge dock in the Port of Vancouver until the second half of May.

* Global oil prices rose as signs of improving demand in the U.S. and China, the top two oil consumers, aided the bounce from the previous session’s $1 a barrel slide.

(Reporting by Nia Williams in British Columbia; Editing by Alan Barona)