The discount on Western Canada Select (WCS) to the North American benchmark West Texas Intermediate futures (WTI) was unchanged on Friday.

WCS for June delivery in Hardisty, Alberta, settled at $9.10 a barrel under the U.S. benchmark WTI, according to brokerage CalRock.

Canadian heavy crude has been trading at a tight discount in recent months in part due to the opening of the Trans Mountain pipeline expansion one year ago, which boosted the country’s oil export capacity.

Canadian crude has also benefited from U.S. sanctions on Venezuela and other countries, which is boosting demand for non-sanctioned heavy crude producers.

Canadian heavy crude producers also tend to see tighter differentials when global oil prices are lower, in part because it means less competition for pipeline space.

Globally, oil prices settled nearly 2% higher on Friday and notched their first weekly gains since mid-April as a U.S. trade deal with the United Kingdom turned investors optimistic ahead of talks between top officials from Washington and Beijing.
Source: Reuters