WCS Discount Narrows as WTI Prices Rise Amid Global Demand Weakness

The discount on Western Canada Select crude oil to North American benchmark West Texas Intermediate futures has narrowed, settling at $14.95 a barrel below WTI for August delivery in Hardisty, Alberta.

This represents a decrease from Monday's discount of $15.15 and unwinds most of the tightening that occurred in June.

The narrowing trend is due to increased volumes of oil transiting through the Strait of Hormuz and ongoing weakness in China's import appetite, which is hurting demand for heavy crude globally.

Oil prices rose 3% on Tuesday before extending gains post-settlement after the U.S. revoked the general license that authorized the sale of Iranian crude oil.