Syncrude Discount Narrows After Suncor Announces Upgrader Work

The discount for Syncrude narrowed after Suncor Energy Inc. (SU) said it will shut units at its oil- sands upgraders in the next two quarters for maintenance.

The Calgary-based company will shut a coker at its No. 1 upgrader near Fort McMurray, Alberta, next quarter, according to a filing. In the third quarter the company plans to shut a coker at its No. 2 upgrader for maintenance.

Syncrude (USCSSYNS)’s discount to West Texas Intermediate futures narrowed $1.25 to $2.75 a barrel at 2:21 p.m. in New York, according to data compiled by Bloomberg. That’s the smallest gap in two weeks.

Western Canada Select (USCSWCAS)’s discount narrowed $2 to $31.25 a barrel. Bakken (USCSUHC1) oil was unchanged at $15 a barrel below WTI.

In the U.S. Gulf Coast, Light Louisiana Sweet (USCSLLSS)’s premium to WTI added $1.10 to $18.40 a barrel. Heavy Louisiana Sweet increased 75 cents to a premium of $20.75.

Thunder Horse’s premium to WTI grew 65 cents to $17.35 a barrel and Mars Blend’s premium narrowed 5 cents to $12.95. Poseidon (USCSPOSE) gained 25 cents to $12.85 a barrel over WTI. Southern Green Canyon (USCSSGCN)’s premium widened 15 cents to $12.65.

West Texas Sour (USCSWTSM)’s discount widened 10 cents to $3.35 a barrel.

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