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Heavy oil discount widens further

The discount on Western Canada Select (WCS) heavy crude versus the North American benchmark West Texas Intermediate (WTI) widened for a second consecutive day on Friday:

WCS for June delivery in Hardisty, Alberta, closed at $12.75 a barrel below WTI, according to brokerage CalRock, after settling at $12.20 a barrel below the benchmark on Thursday.

Canadian heavy crude differentials are widening due to high inventories, one broker said.

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

Global oil prices fell by nearly $1 a barrel as comments from U.S. central bank officials indicated higher-for-longer interest rates, which could hinder demand from the world’s largest crude consumers.
Source: Reuters (Reporting by Nia Williams in British Columbia; Editing by Shailesh Kuber)

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