Canadian Oils Weaken as Enbridge Apportions Mainline Mid-MonthEdward Welsch
Canadian crude oil weakened after Enbridge Inc. issued a mid-month apportionment notice for its Mainline pipeline system.
Enbridge Line 6a has been apportioned by 16 percent and Lines 4 and 67 each by 10 percent for the remainder of January, the company said.
Western Canada Select, a heavy bitumen blend, fell $2.50 to a $39.50 discount to U.S. oil benchmark West Texas Intermediate, according to Calgary oil broker Net Energy Inc. Syncrude, a synthetic light oil processed from oil-sands bitumen, fell 75 cents to a 25 cent discount, according to Net Energy data.
The mid-month shift was caused by power outages in Manitoba, as well as an electrical equipment failure in Edmonton in December, according to one of the people.
Oils produced in Texas’s Permian Basin weakened as HollyFrontier Corp. was scheduled to begin maintenance at its 115,000 barrel-a-day Navajo refinery in Artesia, New Mexico, early this month. Company officials said Nov. 7 maintenance would begin this month, and the company reported extra emissions from the plant on Jan. 7. The refinery processes crudes from West Texas and Cushing.
West Texas Sour weakened 75 cents to an $18.75 per-barrel discount to WTI, while West Texas Intermediate delivered in Midland, Texas, weakened 65 cents to trade at a $13.75 discount to the same grade delivered in the U.S. supply hub in Cushing, Oklahoma.