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West Texas Sour Discount Widens as Enbridge Apportions Lines

Dec. 2 (Bloomberg) -- West Texas Sour’s discount to West Texas Intermediate widened after Enbridge Inc. said it will apportion space by an additional 26 percent on its crude-oil pipelines 6A, 14 and 62 for December deliveries.

Enbridge is making the move because of high nominations from shippers and temporary capacity restrictions in Line 6A, Jennifer Varey, a company spokeswoman, said in an e-mail. Apportionments are made when nominations exceed capacity.

The plentiful supply of oil could weigh on sour crude grades as overall system inventories for Enbridge rose 1.26 million barrels to 16.1 million on Nov. 30 from 14.9 million on Nov. 25, the day of an electrical failure at the company’s Lockport, Illinois, terminal.

West Texas Sour’s discount widened 10 cents, or 3.9 percent, to $2.70 a barrel at 3:58 p.m. in New York, according to data compiled by Bloomberg. The grade added $1.15 to $85.30.

Western Canada Select’s discount to WTI widened $2.85 to $16.50 a barrel as the grade lost $1.60 to $71.50. The discount for Syncrude, a light, low-sulfur synthetic oil derived from the tar sands in Alberta, widened 65 cents to $2. The grade rose 60 cents to $86 a barrel.

Gulf Crudes Gain

Other U.S. Gulf crudes gained as the discount for WTI versus Brent widened to the largest since the end of September, making imports more expensive and domestic grades cheaper.

The gap between WTI, the U.S. benchmark, and Brent, its more expensive European counterpart, widened 57 cents to $2.69 a barrel as of 5:12 p.m. New York time. Cargoes from Europe and West Africa are purchased at a premium or discount to Brent.

Mars Blend’s discount tightened 45 cents to 50 cents versus WTI, according to Bloomberg data at 3:58 p.m. New York time. The grade rose $1.70 to $87.50.

Poseidon’s discount to WTI narrowed 25 cents to $1.75 a barrel as the grade added $1.50 to $86.25 a barrel.

Thunder Horse’s premium widened 35 cents to $1.90 a barrel, while the grade gained $1.60 to $89.90. Southern Green Canyon’s discount narrowed 73 cents to $1.57 as the grade added $1.98 to $86.43 a barrel.

Light Louisiana Sweet’s premium advanced 50 cents to $4.85 a barrel as the grade rose $1.75 to $92.85. Heavy Louisiana Sweet’s premium rose 45 cents to $3.75 a barrel as the grade climbed $1.70 to $91.75.

To contact the reporter on this story: Samantha Zee in San Francisco at szee@bloomberg.net

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

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