Western Canadian Crude Plunges as Cushing Stockpiles Increase

March 7 (Bloomberg) -- Western Canada Select oil tumbled to the weakest level since at least 2008 as crude supplies at Cushing, Oklahoma, swelled to the most in seven months.

Inventories last week in Cushing, the largest U.S. storage hub, increased 2.37 million barrels, or 7 percent, to 36.2 million barrels, the most since July 22, the Energy Department reported today.

Western Canada Select’s discount to U.S. benchmark West Texas Intermediate widened $2.50 to $36 a barrel at 2:14 p.m. in New York, the largest gap in Bloomberg records that go back to May 2008.

Syncrude slipped $4.50 to $12.50 a barrel below WTI. The discount for Bakken oil widened $2 to $21 a barrel, the largest gap since Feb. 10.

Enbridge Inc. resumed service late yesterday on its Line 14 in Illinois. The line is one of two that was forced shut after an accident March 3. The other pipe, Line 64, is scheduled to resume service tomorrow, the company said yesterday.

In the U.S. Gulf Coast, Light Louisiana Sweet’s premium to WTI widened 45 cents to $19.70 a barrel. Heavy Louisiana Sweet strengthened 60 cents to a premium of $22.

Thunder Horse’s premium to WTI was unchanged at $18.25 and Mars Blend strengthened 55 cents to a premium of $14.55. Poseidon’s premium added 80 cents to $14.05. Southern Green Canyon’s gained 25 cents to $13.50 over WTI.

West Texas Sour’s discount widened 10 cents to $4.75 a barrel.

To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

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