Canadian Oils Weaken as BP’s Whiting Refinery Shutdown Nears
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The 420,000-barrel-a-day plant will shut its largest crude unit for planned work on Nov. 1, a person familiar with operations at the plant said April 19. The London-based company plans to move heavy equipment to the plant on Nov. 4 or Nov. 11 Bob Kark, economic development director for the city of Whiting, said in a telephone interview.
November Syncrude’s premium to West Texas Intermediate narrowed 60 cents to $3.90 a barrel at 3:21 p.m. in New York, according to Net Energy Inc., a Calgary-based oil brokerage. Western Canada Select’s discount to WTI widened 35 cents to $15 a barrel.
Prices also weakened on the U.S. Gulf Coast as the differential for WTI compared with North Sea Brent narrowed.
The difference between the benchmarks decreased 88 cents to $22.76 a barrel in New York. When Brent falls at a faster pace than WTI, as it did today, it typically weakens the value of U.S. grades competing with foreign oils priced against the European benchmark.
Light Louisiana Sweet’s premium narrowed 50 cents to $21.20 a barrel over WTI, according to data compiled by Bloomberg at 4:12 p.m. Heavy Louisiana Sweet’s premium lost 30 cents to $21 a barrel.
Poseidon’s premium narrowed 45 cents to $13.80. Mars Blend decreased by 10 cents to $14.90 a barrel over WTI, and Southern Green Canyon lost 5 cents to $13.40.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, narrowed 25 cents to $19.25 above WTI.
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