Seasonal trade in oil firming up!! New refineries in heavy crude is ramping up .
Expecting WCS gapping up its discount against WTI !!
Originally designed to work with Venezuelan crude, the new refinery will now be using heavy crude from Colombia, Ecuador, and Canada for its operations, the report noted, citing unnamed sources.
According to them, PetroChina has contracted at least 8 million barrels of heavy crude from these three countries, to load in April. And prices are already reflecting this tick-up in demand: Canada’s Cold Lake sells at a discount of $11.50 to Brent crude, which is down from about $20 per barrel earlier this year.