Canadian Oils Jump Ahead of Upgrader and Production Work
Canadian oils jumped for the fifth consecutive session before planned maintenance the next few months that will reduce supply flows from Alberta upgraders and production sites.
Canadian Natural Resources Ltd. will make repairs at its Horizon upgrader in Alberta during the third quarter on heat exchangers and mechanical seals, President Steve Laut said during a conference call with investors.
MEG Energy Corp. will halt bitumen output at its Christina Lake processing plant for about three weeks of work in September, Brad Bellows, a Calgary-based spokesman for the company, said yesterday in a phone interview.
Syncrude gained 50 cents to $4.50 a barrel over West Texas Intermediate at 12:28 p.m. in New York, according to data compiled by Bloomberg. That’s the largest premium for the grade since Dec. 2. Syncrude is a synthetic oil upgraded from tar-like bitumen in Alberta into refinery-ready crude.
Western Canada Select’s discount narrowed $2.70 to $12.30 a barrel below WTI, the smallest gap since Dec. 5. Bakken oil’s discount narrowed $1 to $2.25 a barrel below the U.S. benchmark.
In the U.S. Gulf Coast, most grades weakened. Heavy Louisiana Sweet’s premium to the U.S. benchmark narrowed $1.25 to $16 a barrel. Light Louisiana Sweet decreased 35 cents to $17 over WTI.
Poseidon’s premium slipped 55 cents to $11.75, while Southern Green Canyon decreased 60 cents to $10.65 a barrel over WTI. Mars Blend’s premium lost 90 cents to $12.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, narrowed $2.05 to $14.85.
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