Heavy Canadian crude prices narrowed to the smallest discount against U.S. benchmark futures since April as crude-by-rail shipments were forecast to increase.
Western Canadian Select, an oil sands benchmark, shrank $1.30 to $9.20 a barrel below West Texas Intermediate crude Tuesday, data compiled by Bloomberg show. Prices surged after Canadian Pacific Railway Ltd. said crude-by-rail volumes were expected to rise 20% in the third quarter from about 160,000 barrels a day in the second quarter.
The heads of Canadian oil companies including Cenovus Energy Inc. and Suncor Energy Inc. are offering to boost crude-by-rail shipments in exchange for higher production limits.