Canadian Crudes Rebound as Citgo Said to Restart Lemont Unit
Canadian heavy crude strengthened after a U.S. refinery that processes the grade was reported to restart part of a crude unit that had been shut by a fire on Oct. 23.
Citgo Petroleum Corp.’s Lemont, Illinois, plant was said to start an atmospheric crude distillation unit, according to a report today from Genscape Inc., a Louisville, Kentucky-based energy-information provider. The 170,500-barrel-a-day refinery processes mostly heavy Canadian crude.
Western Canadian Select heavy crude for December delivery strengthened $2 to a $37-a-barrel discount against U.S. benchmark West Texas Intermediate, narrowing from $42 on Nov. 5, according to data compiled by Bloomberg at 2:02 p.m. New York time. Syncrude, a light oil produced by oil-sands upgraders, gained $1.25 to a $13.50 discount to WTI.
“That’s still pretty weak,” said Christopher MacCulloch, an analyst with Desjardins Securities Inc. “The overall WCS pricing is being driven more on apportionments.”
Crude pipelines out of Alberta, the country’s main producing province, are overbooked. The largest oil export system, Enbridge Inc. (ENB)’s 2.5 million-barrel-a-day Mainline, apportioned seven lines connecting crude from Alberta to the U.S. Midwest.
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