Bakken Weakens to Three-Week Low on Pipeline Restrictions
Bakken crude weakened to the smallest premium over West Texas Intermediate oil in three weeks as Enbridge Inc. (ENB) apportioned deliveries on pipelines in the region.
Enbridge said Sept. 21 that shippers would have to cut requests to transport oil by 8 percent on two pipelines from Alberta to Superior, Wisconsin; by 10 percent on a line connecting Superior to Sarnia, Ontario; and by 15 percent on a line connecting Superior to the Griffith-Hartsdale area in Indiana.
The Bakken formation covers most of North Dakota and portions of Montana and Saskatchewan. Smaller pipeline systems in the area connect producers to Enbridge’s lines.
Bakken’s premium to WTI, the U.S. benchmark crude, fell $2 to $1 a barrel at 4:01 p.m. New York time, according to data compiled by Bloomberg. It’s the smallest premium since Sept. 4.
West Canada Select’s discount to WTI narrowed 20 cents to $13 a barrel. Syncrude remained unchanged with a premium of $7.50 a barrel.
Light Louisiana Sweet oil’s premium rose 15 cents to $21 a barrel. Heavy Louisiana Sweet fell 50 cents to an $18.75-a- barrel premium.
Mars Blend rose 25 cents to $12.75 a barrel more than WTI. Poseidon oil widened its premium by $1.10 to $12.35 a barrel. Souther Green Canyon gained 20 cents to $11.50 over WTI. Thunder Horse’s premium narrowed 50 cents to $19.50 a barrel.
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