Western Canada Select, a heavy Canadian oil, surged to the smallest discount versus West Texas Intermediate in three months as refiners returned from seasonal maintenance, boosting demand.
Valero Energy Corp. restarted a crude unit at its Memphis, Tennessee, refinery after maintenance, Bill Day, a company spokesman in San Antonio, said today in an e-mail. CVR Energy Inc. completed planned work at the Coffeyville refinery in Kansas and the plant is operating at 115,000 barrels a day, Steve Eames, a company spokesman, said in an e-mail March 26.
Western Canada Select’s discount narrowed $1.45 to $18.05 a barrel versus WTI at 2:02 p.m. in New York, according to data compiled by Bloomberg. The margin is the smallest since Jan. 6.
Syncrude’s discount narrowed $1.55 a barrel to $1.25 a barrel, the smallest discount since Feb. 15. Bakken oil’s discount was steady at $9 below WTI.
The discounts for West Texas Sour and WTI oil priced in Midland, Texas, also narrowed against the U.S. benchmark priced in Cushing, Oklahoma. The grades have both strengthened the past few days after Sunoco Logistics Partners LP said last week it would begin deliveries on a pipeline system that transports crude from West Texas to Houston.
West Texas Sour’s discount narrowed 50 cents to $6.50 a barrel. WTI at Midland strengthened 25 cents to a $6.25 discount.
Light Louisiana Sweet’s premium narrowed 45 cents to $19.50 a barrel over WTI. Heavy Louisiana Sweet decreased 40 cents to a premium of $20.60 a barrel.
Thunder Horse’s premium was unchanged at $17.50 a barrel over WTI, and Mars Blend added 35 cents to a premium of $13.10. Poseidon’s premium widened 10 cents to $11.85, while Southern Green Canyon’s increased $1.10 to $11.75.