Heavy Alberta Oil Weakens as Pipe Restrictions Limit Shipments

Heavy Alberta oil weakened because of Midwest plant shutdowns and limited space on pipelines that move the crude to U.S. refiners.

Enbridge Inc. (ENB) apportioned oil shipments for December on portions of Lines 4 and 67 in aggregate by 13 percent, the company said Nov. 26. BP Plc (BP/)’s Whiting, Indiana, refinery shut Pipestill 12, the largest crude unit at the plant, for planned work that is expected to be completed by the middle of next year, a person familiar with the situation said Nov. 5.

The discount for Western Canada Select for January delivery versus West Texas Intermediate widened $2.50 a barrel to $35 a barrel at 1:27 p.m. New York time, according to Net Energy Inc., a Calgary oil broker.

Syncrude’s premium for January delivery narrowed 20 cents to $1.80 a barrel above WTI, Net Energy said. The same grade for December delivery gained $2.75 to a $2.35 premium above the U.S. benchmark.

In the U.S. Gulf Coast, West Texas Sour weakened 25 cents to a $15.75-a-barrel discount to WTI, according to data compiled by Bloomberg at 1:54 p.m. in New York.

Light Louisiana Sweet’s premium increased 70 cents a barrel to $23.45 above WTI. Heavy Louisiana Sweet’s rose 40 cents to $22.75.

Poseidon’s premium widened 55 cents to $18.10. Mars Blend increased 65 cents to $17.75 a barrel over WTI, and Southern Green Canyon gained 35 cents to an $18.10 premium.

The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, was unchanged at $20 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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