CALGARY, Alberta (Reuters) - Canadian heavy crude differentials widened on Tuesday after news of the start of Japan Petroleum Exploration’s (1662.T) Hangingstone oil sands expansion project in the Alberta province.
Western Canada Select heavy blend crude for September delivery in Hardisty, Alberta, last traded at $10.05 per barrel below the West Texas Intermediate CLc1 benchmark, according to Shorcan Energy brokers, widening from Friday’s settlement of $9.95 per barrel below WTI. [O/R]
WCS for September delivery at the U.S. crude futures hub of Cushing, Oklahoma, last traded at $4.95 per barrel below WTI.
Light synthetic crude from the oil sands for September delivery in Hardisty last traded at 80 cents per barrel over WTI, down from Friday’s settle of $1.20 per barrel over the benchmark.
Japan Petroleum Exploration said on Thursday it has started production from Hangingstone, but permanently closed an associated project that been shut since May 2016 due to low prices and devastating fires.
Reporting by Ethan Lou; Editing by David Gregorio