Syncrude Premium Smallest in Nearly a Year on Output Increases
The premium for Syncrude was unchanged at the smallest level in almost a year as Canadian producers boosted output.
Suncor Energy Inc. (SU) oil sands production increased 9.2 percent to 345,000 barrels a day in December, according to a statement on the company’s website today. The output, which includes upgraded synthetic crude oil, diesel, and non-upgraded bitumen, was the highest for any month of the year, according to the statement.
Syncrude Canada Ltd.’s December output rose 23 percent from a month earlier, according to a posting on the website yesterday of Canadian Oil Sands Ltd (COS)., a member of the joint venture. Production of synthetic oil averaged 282,800 barrels a day last month at the project.
Syncrude (USCSSYNS)’s premium was unchanged at 50 cents above West Texas Intermediate crude at 12:36 p.m. in New York, according to data compiled by Bloomberg. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
Western Canada Select (USCSWCAS)’s discount to WTI widened by 75 cents to $17 a barrel, the steepest level in five months.
Thunder Horse’s premium increased $1.25 to $8.50. Mars Blend added $1.45 to $7.25 over WTI. Poseidon (USCSPOSE)’s premium widened $1.60 to $6.85 a barrel.
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