Heavy Canadian Oil Weakens to Lowest Since July as Lines Fill Up

Heavy Canadian oil weakened to the widest discount to West Texas Intermediate since July after Enbridge Inc. (ENB) said this week demand to ship crude on four lines exceeded available space.

The Calgary-based company said Oct. 23 November shipments on its 491,200 barrel-a-day Line 5 will be apportioned by 17 percent. Demand also surpassed capacity on Lines 6A, 62, 6B and 14. Canadian shipments of oil to the U.S. were lower than normal after TransCanada Corp. shut its Keystone pipeline Oct. 17 for repairs on a section of pipe crossing the border between Missouri and Illinois. The line was restarted Oct. 22.

The discount for Western Canada Select, a heavy crude grade from Alberta, versus WTI, the U.S. benchmark, widened $2.50 to $25 a barrel at 2:05 p.m. in New York, according to data compiled by Bloomberg. Its the cheapest the blend has traded at since July 6.

The premium of Syncrude, a synthetic light blend, to WTI was unchanged at 75 cents a barrel. Bakken’s discount increased 50 cents to $1.25.

In the U.S. Gulf Coast grades strengthened.

Heavy Louisiana Sweet’s premium increased 50 cents to $21.60. Light Louisiana Sweet’s premium widened 70 cents to $22.80.

Southern Green Canyon’s premium widened 75 cents to $13.75 a barrel. The premium for Thunder Horse was steady at $18.50 a barrel. The Gulf crudes compete with seaborne imports.

Mars Blend gained 35 cents to $15.35 a barrel over WTI and Poseidon’s premium increased 25 cents to $15.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.