Syncrude Strengthens Against WTI After Production Falls
Syncrude strengthened after Canadian Oil Sands Ltd. (COS), the largest owner of the Syncrude Canada Ltd. joint venture, said production of the synthetic grade dropped 41 percent last month.
Output fell because of work on the venture’s 8-3 coker unit at its upgrader near Fort McMurray, Alberta. May production declined to 196,300 barrels a day from 330,300 barrels in April, the company said in a report on its website yesterday. Total production dropped to 6.1 million barrels from 9.9 million a month earlier, according to the posting.
Syncrude’s discount to West Texas Intermediate narrowed $1.50 a barrel to $7 at 1:51 p.m. in New York, according to data compiled by Bloomberg. Western Canada Select’s discount narrowed $1 to $24 a barrel. Bakken oil’s discount narrowed 35 cents to $11.65.
U.S. Gulf Coast crude grades also strengthened. Light Louisiana Sweet’s premium to WTI gained 70 cents to $12.70 a barrel. Heavy Louisiana Sweet’s premium increased 80 cents to $15.15 a barrel.
Mars Blend’s premium gained 65 cents to $10.90. Southern Green Canyon’s premium widened $1.10 to $10.90. Poseidon’s premium increased $1.80 to $11.25.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, widened 25 cents to $12.25 a barrel.
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