Bakken Oil Weakens as BP Cuts Refinery Rates After Whiting Fire
Bakken oil’s discount to West Texas Intermediate oil weakened after BP Plc slowed production at its Whiting refinery in Indiana following a fire in a coker late yesterday.
The fire broke out in one of the unit’s three drums, said two people, who declined to be identified because they aren’t authorized to speak for the company. The fire resulted in the reduction of crude runs at the plant, one of the people said.
Bakken oil’s discount to WTI widened $1.75 to $3 a barrel at 2:06 p.m. in New York, according to data compiled by Bloomberg. Western Canada Select’s discount was unchanged at $14 below WTI.
Syncrude’s premium was steady at $3 over WTI. Syncrude is a synthetic oil upgraded from tarlike bitumen in Alberta into refinery-ready crude.
Heavy Louisiana Sweet increased 80 cents to $16.25 a barrel over WTI. Light Louisiana Sweet’s premium to the U.S. benchmark added 95 cents to $17.
Poseidon’s premium weakened 30 cents to $9 a barrel. Southern Green Canyon rose 15 cents to $8.50 over WTI. Mars Blend lost 40 cents to $9.60 a barrel over the U.S. benchmark.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, decreased 10 cents to $11.85.
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