Canadian heavy oil strengthened on the spot market for a second day, reaching its strongest price relative to the U.S. benchmark in almost five months.
Western Canada Select, a heavy blend of diluted oil-sands bitumen, strengthened by $1 a barrel to $18.50 a barrel below West Texas Intermediate crude for delivery in April, according to Calgary oil broker Net Energy Inc. It was the smallest discount for the grade since Oct. 17, according to data compiled by Bloomberg.
Forward-delivery months also strengthened. WCS for May delivery gained 50 cents to a $19.25-a-barrel discount; June delivery rose 75 cents to a $19-a-barrel discount.
Syncrude, a light oil processed from bitumen, strengthened by 50 cents to a $6.50 premium to WTI.
On the Gulf Coast, offshore oils weakened as WTI narrowed its discount to Brent, the benchmark for overseas imports. The gap between WTI and Brent fell 51 cents to $18.40 at 2:20 p.m. New York time, according to data compiled by Bloomberg.
Heavy Louisiana Sweet oil’s premium narrowed 65 cents to $20.85 above WTI at 2:34 p.m., according to data compiled by Bloomberg. Poseidon’s premium lost 25 cents to $16, and Thunder Horse lost 50 cents to an $18.50 premium.