Syncrude Jumps as Six-Week Nexen Upgrader Work May Reduce Supply
The Calgary-based company will begin shutting the upgrader tomorrow for six weeks of scheduled maintenance, Davis Sheremata, a company spokesman, said in an e-mail. Nexen’s steam-assisted gravity drainage production site at Long Lake will also be closed for three weeks during the upgrader work.
Syncrude gained $1 to $6.25 a barrel over the U.S. benchmark at 1:55 p.m. in New York, according to data compiled by Bloomberg. That’s the largest premium for the grade since Nov. 2. Syncrude is a synthetic oil upgraded from tar-like bitumen in Alberta into refinery-ready crude.
Western Canada Select weakened $2.25 to $14 a barrel below WTI. Bakken oil’s discount narrowed 50 cents to 50 cents a barrel below the U.S. benchmark.
Heavy Louisiana Sweet’s premium to WTI rose 90 cents to $19.50 a barrel, the highest level since April. Light Louisiana Sweet increased $2 to $20 over WTI.
Poseidon gained $2 to $15, while Southern Green Canyon increased $1.50 to $13.50 a barrel over WTI. Mars Blend’s premium widened $1.35 to $15.25.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, increased $1.75 to $17.
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