Syncrude’s premium to West Texas Intermediate crude surged to the widest in almost 11 months after Suncor Energy Inc. began maintenance on a vacuum tower at its Fort McMurray upgrader in Alberta.
The work on the unit, which processes heavy bitumen from Alberta’s oil sands into a light, sweet oil, is scheduled to last six weeks, Sneh Seetal, a Calgary-based spokeswoman, said by e-mail yesterday. Repairs at Nexen Inc.’s Long Lake upgrader, which shut in mid-August and is expected to resume output in the second half of this month, may also reduce supplies.
Syncrude increased $1 to $13 a barrel over WTI at 12:10 p.m. in New York, according to data compiled by Bloomberg. That’s the largest margin since Oct. 19.
Western Canada Select’s discount was unchanged at $9.25 a barrel below the U.S. benchmark. Bakken’s premium was unchanged at $6 a barrel.
On the U.S. Gulf Coast grades strengthened. Light Louisiana Sweet’s premium to WTI added 40 cents to $17.10 a barrel. Heavy Louisiana Sweet increased 55 cents to $17.35.
Poseidon’s premium grew 20 cents to $13.20. Mars Blend’s premium increased 25 cents to $13.05 a barrel over WTI. Southern Green Canyon’s widened by 25 cents to $11.75.
Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, was unchanged at $16 above WTI.