Heavy Canadian Oil Drops Before Midcontinent Refinery Work Start
Western Canada Select weakened before the start of planned maintenance at U.S. midcontinent refineries, which will reduce demand from plants that typically process Alberta crudes.
BP Plc (BP/)’s Whiting, Indiana, refinery, the Midwest’s largest, will shut a crude unit known as Pipestill 12 starting Nov. 1 for work scheduled to last 100 days, a person familiar with the maintenance said April 19.
HollyFrontier Corp. (HFC) will idle the 90,000-barrel-a-day West plant in Tulsa, Oklahoma, starting in November for work scheduled to last about five weeks, a person with knowledge of the repairs said June 28.
Western Canada Select for November traded at a $14 discount to West Texas Intermediate, according to Net Energy Inc., a Calgary-based trading system. Yesterday, the grade was at $11 below the U.S. benchmark, data compiled by Bloomberg showed.
November Syncrude traded at a $7 premium to WTI, Net Energy said. It was $10.75 above the U.S. benchmark yesterday, according to Bloomberg data. Bakken traded at a $3 premium to WTI, Net Energy said.
U.S. Gulf Coast oils strengthened. Heavy Louisiana Sweet’s premium to WTI increased $1.30 to $21.15 a barrel as of 11:53 a.m. New York time, according to data collected by Bloomberg. Light Louisiana Sweet added $1.10 to $19.95.
Poseidon’s premium widened $1 to $12.25. Mars Blend’s increased 15 cents to $12.65 a barrel over WTI and Southern Green Canyon was steady at $11.25.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, widened 50 cents to $17.50 above WTI.
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