WTI Discount Narrowing as Global Crude Prices Surge on Trump Warning

The discount on Western Canada Select (WCS) crude oil to North American benchmark West Texas Intermediate (WTI) futures narrowed on Wednesday.

According to brokerage CalRock, WCS for August delivery in Hardisty, Alberta settled at $14.40 a barrel below the U.S. benchmark WTI, compared to $14.95 on Tuesday.

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