Syncrude’s discount to benchmark West Texas Intermediate widened to its lowest since mid-September as production from Canadian oil fields climbed last month.
Canadian syncrude production rose 45 percent in November to 356,800 barrels a day from 245,400 barrels a day in October, Canadian Oil Sands Trust said in a notice on its website. Output climbed as local maintenance projects ended, driving production last month to the highest level this year.
Syncrude is a light, low-sulfur synthetic crude oil derived from tar sands in Alberta.
Suncor Energy Inc., in a report yesterday, said its oil- sands production was 325,000 barrels a day last month. While that’s 1.5 percent less than output during October, it exceeds the company’s target of 280,000 barrels a day for the year.
Syncrude’s discount to the benchmark WTI widened 35 cents to $2.35 a barrel at 4:02 p.m. in New York, according to data compiled by Bloomberg. That’s the weakest since Sept. 24. The grade advanced 84 cents to $86.84 a barrel.
WTI for January delivery at Cushing, Oklahoma, rose $1.19 to $89.19 a barrel, at parity with New York Mercantile Exchange futures.
Western Canada Select’s discount to WTI narrowed 25 cents to $16.75 a barrel. The grade added 94 cents to $72.44 a barrel.
Spreads for crudes in the U.S. Gulf mostly rose.
High-sulfur Poseidon’s discount to WTI narrowed 50 cents to $1.25 a barrel as the grade gained $1.69 to $87.94. Mars Blend’s discount to WTI narrowed 10 cents to 40 cents a barrel as the oil rose $1.29 to $88.79 a barrel.
West Texas Sour’s discount to the U.S. benchmark widened 5 cents to $2.75 a barrel. The grade rose $1.14 to $86.44.
Southern Green Canyon’s discount tightened 7 cents to $1.50 as the oil advanced $1.26 to $87.69. Thunder Horse’s premium widened 40 cents to $2.30 as the grade gained $1.59 to $91.49 a barrel.
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