Syncrude Plunges to Record Discount on Output, Refinery Outage

Canadian oil discounts plunged as Alberta producers boost production and after BP Plc shut a gasoline-making unit for unplanned maintenance at an Indiana refinery, weakening demand.

Syncrude Canada Ltd. increased production by 11 percent in January from the previous month to 313,200 barrels a day, Canadian Oil Sands Ltd., the largest shareholder in the joint venture project, said in a statement on its website yesterday. BP shut a fluid catalytic cracker at the Whiting refinery, a person familiar with refinery operations said.

The discount for Syncrude (USCSSYNS) widened to the largest amount since at least 2006, dropping $5.50 to $13.50 below West Texas Intermediate at 12:24 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 weakened $2.75 to $31 a barrel, the cheapest in more than a year.

In the U.S. Gulf Coast, Light Louisiana Sweet (USCSLLSS)’s premium to WTI gained 40 cents to $15.30 a barrel. Heavy Louisiana Sweet increased $1.60 to $18.85 over the U.S. benchmark.

Thunder Horse’s premium to WTI gained $2.15 to $16.90 and Mars Blend’s rose $1.05 to $13.40. Poseidon (USCSPOSE)’s premium strengthened $1 to $13.50 a barrel. Southern Green Canyon (USCSSGCN) increased $1 to $13 over WTI.

West Texas Sour (USCSWTSM)’s discount widened $1.50 to $4.50 a barrel, the largest gap in almost a year. Western Refining Inc. will perform work in early February on a crude unit and fluid catalytic cracker at the El Paso, Texas, refinery, a person with knowledge of the plans said Jan. 13. The plant can process 20,000 to 25,000 barrels a day of WTS.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.