Canada, Bakken Crude Grades Weaken on Delayed Keystone Restart
Canadian and Bakken crude grades weakened as the Keystone oil pipeline’s restart was delayed for a second day, constraining oil flows.
TransCanada Corp. (TRP) expects to restart the Keystone pipeline today after it was shut Oct. 17 after an anomaly was found during routine maintenance. The 590,000-barrel-a-day line was scheduled to resume operations Oct. 20, but bad weather at the site of the repairs on a section of the pipe that crosses the border from Missouri to Illinois delayed repairs.
Syncrude, a synthetic light Canadian blend, lost its premium to West Texas Intermediate, falling $3.25 to a discount of $2.50 a barrel as of 4:19 p.m. New York time, according to data collected by Bloomberg.
Bakken crude from North Dakota also lost its premium, falling $2.50 to a $2 discount against WTI. Keystone doesn’t transport Bakken crude, though the grade competes for space with Canadian crudes on Enbridge Inc. (ENB)’s Mainline pipeline that carries oil to the U.S. Midwest.
The spread between WTI and North Sea Brent crude widened for the first time in four trading days, making imported oil more expensive and boosting the price of some crude grades produced in the U.S. Gulf Coast.
Light Louisiana Sweet’s premium widened 25 cents to $20.25 a barrel.
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