Canadian Oils Strengthen as Valero Brings Crudes to Port ArthurEliot Caroom
Canadian crudes strengthened against domestic benchmark West Texas Intermediate after Valero Energy Corp. said it’s considering using barges and rail to move more Canadian oil to the Gulf Coast.
“We are bringing some heavy sour Canadian crudes into Port Arthur,” Texas, where the company has a refinery, Valero President Joe Gorder said on an earnings call. “We want heavy sour crude in the Gulf Coast.”
Syncrude, a synthetic light crude produced from bitumen, strengthened 75 cents to a $1 discount to WTI, at 2:06 p.m. New York time, according to data compiled by Bloomberg. Western Canada Select, a heavy bitumen blend, gained 25 cents to trade at a $31.75 discount.
Gulf Coast crudes were mixed. Thunder Horse weakened 25 cents to a $14.75 premium, while Southern Green lost 25 cents to trade at $12.75 above WTI. Poseidon’s premium was unchanged at $12.25 a barrel over WTI.
Light Louisiana Sweet gained 10 cents to $17.45 a barrel above WTI. Heavy Louisiana Sweet’s premium gained 10 cents to $17.40 a barrel.