West Texas Sour Weakens After Western El Paso Refinery Upset

West Texas Sour crude’s discount to the U.S. benchmark grade weakened the most in eight weeks after Western Refining Inc. (WNR) reported a crude unit upset at its El Paso plant in Texas.

A feed interruption caused the upset yesterday in the refinery’s North crude unit, which was stabilized, the company said in a filing with the Texas Commission on Environmental Quality. The plant processes primarily West Texas Sour and West Texas Intermediate crudes, Chief Executive Officer Jeff Stevens said at a conference March 9.

West Texas Sour oil’s discount to West Texas Intermediate widened $2.25 a barrel, the most since April 25, to $4.75 at 2:06 p.m. in New York, according to data compiled by Bloomberg.

Mars Blend’s premium narrowed 45 cents to $8.80 a barrel. The grade weakened a second day after Royal Dutch Shell Plc (RDSA) said yesterday it resumed production at a U.S. Gulf Coast oil platform following planned maintenance.

Poseidon’s premium narrowed 60 cents to $7.80 a barrel.

Southern Green Canyon’s premium increased $1.25 to $8.35. Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, lost 60 cents to a premium of $11.40 a barrel over WTI.

Light Louisiana Sweet’s premium added 35 cents to $12.35 a barrel. Heavy Louisiana Sweet lost 35 cents to $11.50.

Bakken oil’s discount was unchanged at $6 a barrel below the U.S. benchmark.

Syncrude’s discount held at $1.50 below WTI. Syncrude is synthetic oil upgraded from tar-like bitumen in Alberta into refinery-ready crude.

Western Canada Select’s discount was unchanged at $21.75 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

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