Canadian Oil Discounts Weaken Ahead of U.S. Refinery Maintenance
Discounts for Canadian oil widened ahead of maintenance scheduled to begin next month at U.S. refineries in the Midwest that process oil from Alberta.
Citgo Petroleum Corp. will shut most of the production units at its refinery in Lemont, Illinois, near the end of April for planned repairs, two people familiar with refinery operations said Feb. 8. BP Plc (BP/) plans repairs on a crude unit in April at the Whiting refinery in Indiana, a person familiar with operations said Feb. 3.
Western Canada Select (USCSWCAS)’s discount slipped $1 to $33.50 a barrel below WTI, the biggest margin in a month. The discount for Bakken oil widened $4 to $19.
Enbridge Inc. (ENB) plans to return Line 14 to service early today and Line 64 on March 8, according to a person with knowledge of the situation. The Calgary-based company halted crude deliveries on Lines 14 and 64 on March 3 after two vehicles collided, starting a fire at the pumping station near New Lenox, Illinois, 36 miles (58 kilometers) southwest of Chicago.
Thunder Horse’s premium to WTI narrowed 25 cents to $18.25 and Mars Blend (USCSMARS) strengthened 25 cents to a premium of $14. Poseidon’s premium narrowed 10 cents to $13.25. Southern Green Canyon’s premium lost 75 cents to $13.25 over WTI.
West Texas Sour (USCSWTSM)’s discount widened 50 cents to $4.65 a barrel.
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