Canadian Oils Weaken Ahead of Midcontinent Refinery Maintenance
Canadian grades weakened as U.S. Midcontinent refiners prepared to shut units for seasonal maintenance that may cut demand for the oils.
HollyFrontier Corp. (HFC) will shut the West plant at its Tulsa, Oklahoma, refinery starting in November for maintenance, a person with knowledge of the plans said June 28. The work will begin Nov. 1 and end in the first week in December, said the person. Julia Heidenreich, a Dallas-based spokeswoman for the company, said Oct. 5 that maintenance was scheduled to begin soon without disclosing further information.
Western Canada Select’s discount to West Texas Intermediate widened $1.50 to at $17 a barrel at 10:27 a.m. in New York, according to Net Energy Inc., which says it’s Canada’s largest independent financial and physical oil brokerage. Cold Lake’s discount widened $1.45 a barrel to $18.25.
Syncrude’s premium weakened 50 cents to $3.75 a barrel, the Calgary-based broker said. Bakken oil’s premium narrowed 50 cents to $1.50 a barrel.
Light Louisiana Sweet’s premium narrowed 10 cents to $21.70 a barrel over WTI, according to data compiled by Bloomberg at 1:48 p.m. in New York. Heavy Louisiana Sweet decreased 10 cents to a premium of $21.20 a barrel.
Poseidon’s premium narrowed 25 cents to $14. Mars Blend fell 5 cents to $15.50 a barrel over WTI, and Southern Green Canyon decreased 5 cents to $13.60 over the benchmark.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, dropped 15 cents to $19.60 above WTI.
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