Western Canadian Select at Hardisty, Alberta, was assessed at $60.01/b July 2, the highest assessment since Nov. 14, 2014. The price surge tracked an increase in the NYMEX WTI Calendar-Month Average, which is used as a basis for Canadian trading.
Crude complex strength amid the coronavirus pandemic has been consistent since the middle of fourth-quarter 2020 amid rebounding demand and timid production.
The WTI CMA, kickstarted by news of vaccine progress, has risen in 64.6% of all assessments since it fell to $36.28/b Oct. 30. The WTI CMA stagnated between $35 and $45/b in the previous five months. Since June 1, the WTI CMA has averaged $70.80/b and peaked at $74.01 July 2.
Moderately stable differentials in June for the heavy sour segment in Alberta have allowed outright prices to trade crude futures higher.
WCS Hardisty June assessments averaged around a $13.81/b discount to the NYMEX WTI CMA since June 1.
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Author: phinds