Oct. 5 (Bloomberg) -- The premium for Syncrude oil surged the most in seven months late yesterday after a person with knowledge of the situation said Syncrude Canada Ltd. cut its November forecast by 1.4 million barrels to 9.8 million.
October output was revised downward 100,000 barrels to 7.5 million, according to the person. The forecast reductions are because additional work must be done during a turnaround at the Syncrude upgrader in Alberta, said the person. The work started in early September.
Suncor Energy Inc. said late yesterday that maintenance in oil sands base and in situ would extend into October. September output was affected by the work and fell 6.3 percent to 311,000 barrels a day from August.
The premium for Syncrude to West Texas Intermediate crude strengthened $3.25 to $11 a barrel late yesterday. The grade was unchanged today at 12:12 p.m. in New York. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
The discount for Western Canada Select was unchanged at $9 a barrel. The grade narrowed $1.50 a barrel late yesterday.
Heavy Louisiana Sweet’s premium to WTI widened 45 cents to $27.60 a barrel. Light Louisiana Sweet’s premium weakened 20 cents to $26.75.
Among sour, or high-sulfur, grades, the premium for Mars Blend added 10 cents to $23.25 a barrel while Poseidon strengthened 40 cents to $23.25 a barrel over WTI.
Southern Green Canyon’s premium was unchanged at $22.50 a barrel and West Texas Sour’s discount was unchanged at 90 cents a barrel below WTI. Thunder Horse’s premium increased 25 cents to $27.25 above the benchmark.
--Editors: Richard Stubbe, Charlotte Porter
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