The discount for Syncrude oil from Canada surged after Suncor Energy Inc. began shutting an upgrader in Alberta for three to five weeks of unplanned work.
Output from the Fort McMurray, Alberta, plant will be reduced to about 140,000 barrels a day, Suncor said in a statement yesterday. The oil-sands refinery had average output of 361,000 barrels a day in February, according to the Calgary-based company’s website.
Syncrude’s discount to U.S. benchmark West Texas Intermediate narrowed $7.50 to $13.50 a barrel at 12:04 p.m. in New York, according to data compiled by Bloomberg.
Western Canada Select’s discount narrowed $1.75 to $34 a barrel. Bakken oil’s discount narrowed $2.25 to $16 a barrel.
In the U.S. Gulf Coast, Light Louisiana Sweet’s premium to WTI widened $1.30 to $22 a barrel. Heavy Louisiana Sweet strengthened $1.35 to a premium of $24.
Thunder Horse’s premium to WTI added 10 cents to $20.50 and Mars Blend strengthened 10 cents to a premium of $15.70. Poseidon’s premium was unchanged at $15.20. Southern Green Canyon’s gained 35 cents to $15.75 over WTI.
West Texas Sour’s discount widened 10 cents to $4.60 a barrel.