Canadian crude oils weakened on the spot market after the country’s largest producer said output was rising, increasing supplies.
“I expect that when we post our oil-sands production in a day or two, you’ll see a monthly record of approximately 390,000 barrels a day,” Suncor Energy Inc. (SU) Chief Executive Steve Williams said on the company’s second-quarter conference call yesterday. That level would be up 33 percent from 293,000 barrels in June.
Western Canadian Select oil for September delivery weakened by $1.50 a barrel to a $21.60 discount to U.S. benchmark West Texas Intermediate, according to Calgary oil broker Net Energy Inc. Light Syncrude weakened by 40 cents to a $2.10-per-barrel premium to WTI.
Canadian grades gave up gains of $1.25 a barrel for WCS and 75 cents for Syncrude as Suncor said in its earnings release that Unit 2 of its upgrader in Fort McMurray, Alberta, would be shut for maintenance for about three weeks during the third quarter. Production will be reduced by 50,000 to 60,0000 barrels a day during the work, Williams said, compared with the plant’s normal 350,000-barrel capacity.
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