Canadian synthetic oil surged on the spot market to the highest level in almost nine months as an oil-sands upgrader began maintenance earlier than expected.
The 350,000-barrel-a-day Syncrude project began a work on a coker that had been scheduled for the second half of the year, Canadian Oil Sands Ltd. (COS), the project’s largest owner, said in a statement.
Syncrude, a light crude from oil-sands bitumen processed in an upgrader, surged by $8.25 a barrel, the largest one-day jump since March 14, 2012, according to data compiled by Bloomberg. The grade traded $11.75 a barrel above U.S. benchmark West Texas Intermediate oil as of 11:34 a.m. New York time, the biggest premium since Sept. 19.
The maintenance has been moved up because there was reduced output at the plant after a boiler was shut down for unplanned repairs in May, the company said. The coker turnaround is expected to last 50 days.
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