Western Canada Select, a heavy oil blend from Alberta, surged to the smallest discount to West Texas Intermediate in more than eight months as producers gained access to new markets by pipeline and rail.
Enterprise Products Partners LP is shipping both heavy and light oil on its Seaway pipeline that moves crude from Cushing, Oklahoma, to Texas, Jim Teague, the company’s chief operating officer, said during a conference call Aug. 1. Torq Transloading, a Calgary-based company that loads oil onto trains in Alberta and Saskatchewan, said Aug. 9 that shipments started from a new terminal near Bromhead, Saskatchewan.
Western Canada Select’s discount to WTI narrowed by $3.50 to $11 a barrel at 2:20 p.m. in New York, according to data compiled by Bloomberg. That’s the smallest discount for the grade since Dec. 1.
Syncrude’s premium to the U.S. benchmark was unchanged at $8.50 a barrel.
Bakken oil from North Dakota traded at a $1 discount to WTI. The differential was unchanged today.
On the U.S. Gulf Coast, most grades strengthened. Light Louisiana Sweet’s premium to WTI widened 5 cents to $16.55. Heavy Louisiana Sweet added 20 cents to $16.60 over WTI.
Poseidon’s premium increased 20 cents to $12.85. Mars Blend increased 10 cents to $12.75 a barrel over WTI. Southern Green Canyon’s premium widened 50 cents to $11.75.
Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, decreased 10 cents to a premium of $15.15.