Alaskan Oil Slips With Production Up and Refiners’ Power OutEliot Caroom
Alaska North Slope crude weakened for a third day on the spot market against West Texas Intermediate after increased production in November and reports of refinery outages in California, the oil’s biggest market.
California refineries reported power losses yesterday and today in filings with regulators. ANS production rose to 556,471 barrels a day last month, more than 20,000 barrels above October’s output, according to the state’s Department of Revenue.
The medium, sour crude used by refiners on the U.S. West coast, sank $1.25 to a premium of $11.25 a barrel to WTI at 2:02 p.m. New York time, according to data compiled by Bloomberg.
Tesoro Corp.’s 170,000-barrel-a-day Golden Eagle refinery in Northern California had a power interruption yesterday, a filing with regulators showed. Power to Exxon Mobil Corp.’s Torrance refinery in Southern California was interrupted today, which the company said had a minimal impact on production. Tankers of Alaskan crude are delivered to both ends of the state, according to a California website.
ANS prices declined by $3.75 a barrel against WTI since Dec. 2 after rising by more than $7 a barrel in the previous 10 days.
On the Gulf Coast, Heavy Louisiana Sweet’s premium to WTI rose 10 cents to $5.50 a barrel, while Light Louisiana Sweet fell 70 cents to a premium of $4.50. Mars Blend’s discount was unchanged at 75 cents a barrel.