Syncrude Discount Narrows After Suncor Announces Upgrader Work

The discount for Syncrude narrowed after Suncor Energy Inc. said it will shut units at its oil-sands upgraders in the next two quarters for maintenance.

The Calgary-based company will shut a coker at its No. 1 upgrader near Fort McMurray, Alberta, next quarter, according to a filing. In the third quarter the company plans to shut a coker at its No. 2 upgrader for maintenance.

Syncrude’s discount to West Texas Intermediate futures narrowed $1.25 to $2.75 a barrel at 2:21 p.m. in New York, according to data compiled by Bloomberg. That’s the smallest gap in two weeks.

Western Canada Select’s discount narrowed $2 to $31.25 a barrel. Bakken oil was unchanged at $15 a barrel below WTI.

In the U.S. Gulf Coast, Light Louisiana Sweet’s premium to WTI added $1.10 to $18.40 a barrel. Heavy Louisiana Sweet increased 75 cents to a premium of $20.75.

Thunder Horse’s premium to WTI grew 65 cents to $17.35 a barrel and Mars Blend’s premium narrowed 5 cents to $12.95. Poseidon gained 25 cents to $12.85 a barrel over WTI. Southern Green Canyon’s premium widened 15 cents to $12.65.

West Texas Sour’s discount widened 10 cents to $3.35 a barrel.