The discount of Western Canada Select below Syncrude narrowed to the smallest since January as Nexen Inc. estimated repairs on an upgrader may be done by next week.
The gap between WCS, a heavy, high sulfur oil, versus light, low-sulfur synthetic crude, was $17.10 a barrel at 4:24 p.m. in New York, according to data compiled by Bloomberg.
Nexen may begin returning its Long Lake upgrader in Alberta to service as soon as next week, Patti Lewis, a company spokeswoman, said in an e-mail. The Calgary-based company began shutting the plant Oct. 21 to make repairs on a heat exchanger, she said in an e-mail today.
The discount for Western Canada Select compared with benchmark West Texas Intermediate narrowed $1.15 to $10.35 a barrel. Syncrude’s premium was unchanged at $6.75 a barrel.
The premiums for low-sulfur oil in the U.S. Gulf Coast compared to WTI were mixed.
Heavy Louisiana Sweet’s premium rose 10 cents to $17.90 a barrel while Light Louisiana Sweet decreased 40 cents to $18.10 above WTI.
The premium for Mars Blend fell 50 cents to $13.35 a barrel. Poseidon lost 75 cents to $13.15 a barrel over WTI.
Southern Green Canyon’s premium shrank 65 cents to $12.25 a barrel and West Texas Sour’s discount strengthened 10 cents to 65 cents below WTI. Thunder Horse’s premium dropped $1.55 to $14.75.