Pipeline markets saw low liquidity for Canadian crude Thursday as the end of the August trading cycle approached, but both heavy and light benchmarks fell to new lows on limited trading.
Western Canadian Select, the benchmark heavy Canadian crude, was assessed down $1.00/barrel at WTI CMA minus $24.50/barrel, falling to its largest discount since hitting minus $25.75/b on March 3.
Syncrude, the benchmark light Canadian crude, was assessed down 40 cents/b at WTI CMA minus $4.50/b, falling to its lowest of the year for the second day in a row. Syncrude was last weaker when hit WTI CMA minus $7.00/b on December 16.
One trader said prices could jump more than $2/b with the upcoming roll to September trading and renewed demand, though the ongoing limitations of takeaway capacity could limit any such rise.
Both other heavy Canadian crudes strengthened notably against WCS, with Lloyd Blend rising 25 cents/b to flat with the benchmark and Cold Lake jumping 90 cents/b to a $1.60/b discount.
Traders said they saw no clear reason behind the rise, however, and both crudes still face the same takeaway limitations as WCS.
WCS also saw a modest decline in Cushing, despite overall strength in the US Gulf Coast and sharp stock draws last week in both Cushing and the Gulf Coast. WCS in Cushing was assessed down 25 cents/b at WTI CMA minus $7.1/b, its weakest differential since hitting minus $7.30/b on June 30.
As recently as Monday, WCS in Cushing was assessed $2.66/b above its most direct Gulf Coast competitor, Mexican Maya crude. On Thursday, Maya, which prices off a formula using Gulf Coast crudes and fuel oil, rose to a 4 cents/b premium over WCS in Cushing.
