Heavy Alberta Oil Discount Sinks Near $30 on Pipe, Plant Outages

Heavy Canadian oil traded near a $30 a barrel discount to West Texas Intermediate as lower pipeline flows and seasonal refinery maintenance limit access to the U.S. Midwest market and demand.

TransCanada Corp. (TRP)’s 591,000-barrel-a-day Keystone pipeline that helps transport Western Canadian oil to U.S. plants operated at reduced rates the end of last month after a power interruption. BP Plc (BP/)’s Whiting, Indiana, refinery shut a 235,000-barrel-a-day crude unit at the plant for a planned turnaround, a person familiar with the work said Nov. 5.

Western Canada Select for November delivery weakened $1.10 to a $32 per barrel discount to WTI at 11:53 a.m. in New York, according to Net Energy Inc., which says it’s Canada’s largest independent financial and physical oil brokerage.

The same grade for December delivery weakened 25 cents to a $29.50 discount. WCS is a blend of heavy Canadian crudes mostly sourced from oil sands.

December-delivery Syncrude, a Canadian light synthetic oil processed from oil sands, weakened 25 cents to a $7.25 a barrel discount against WTI, according to the broker.

Light Louisiana Sweet’s premium to WTI narrowed 5 cents to $21.25 a barrel at 2:07 p.m. in New York, according to data compiled by Bloomberg. Heavy Louisiana Sweet’s premium was unchanged at $20.70 a barrel.

Poseidon’s premium was unchanged at $14.60. Mars Blend added 25 cents to $14.75 a barrel over WTI, and Southern Green Canyon was steady at $14.35.

The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, was unchanged at $20.25 above WTI.

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

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