Canada Oil Weakens on Enbridge Pipeline Shutdown, Syncrude Fire
Stock Chart for Enbridge Inc (ENB)
Supplies of heavy oil may increase after Syncrude Canada Ltd. shut a coker with about 100,000 barrels a day of capacity following a March 2 fire. The unit remains shut while being assessed, Siren Fisekci, a spokeswoman in Calgary for Canadian Oil Sands Ltd., the project’s largest shareholder, said today in a telephone interview.
Western Canada Select (USCSWCAS)’s discount to U.S. benchmark West Texas Intermediate weakened $1 to $33 a barrel at 2:05 p.m. in New York, the widest gap since Feb. 29, according to data compiled by Bloomberg.
Syncrude (USCSSYNS) oil slipped 80 cents to $5.80 a barrel below WTI. The discount for Bakken oil weakened $2 to $17 a barrel.
Enbridge was forced to halt crude deliveries on lines 14 and 64 after two vehicles collided March 3, starting a fire at a pumping station near New Lenox, Illinois, 36 miles (58 kilometers) southwest of Chicago.
The Calgary-based company may start operating Line 14 on March 7 and Line 64 the following day, Lorraine Little, a spokeswoman in Superior, Wisconsin, said in an e-mail yesterday. Lines “upstream of Superior will require slowdown or shutdown to manage tank levels,” she said.
In the U.S. Gulf Coast, Light Louisiana Sweet’s premium to WTI added 90 cents to $19.60 a barrel. Heavy Louisiana Sweet increased 15 cents to a premium of $20.65.
Thunder Horse’s premium to WTI widened 35 cents to $18.35 and Mars Blend’s decreased 20 cents to $13.80. Poseidon’s premium narrowed 20 cents to $13.30 a barrel. Southern Green Canyon’s premium added 50 cents to $13.75 over WTI.
West Texas Sour’s discount widened 5 cents to $4.05 a barrel.
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