Oct. 19 (Bloomberg) -- Syncrude’s premium to West Texas Intermediate surged the most in more than seven months after Syncrude Canada Ltd. was said to slash its November production forecast by 1.3 million barrels to 8.7 million.
The forecast reduction is because additional work must be done during a turnaround at the Syncrude upgrader in Alberta, said a person with knowledge of the situation who declined to be identified because the information isn’t public. The work started in early September.
Syncrude’s premium to WTI strengthened $4.10 to $13.25 a barrel at 2:02 p.m. in New York, according to data compiled by Bloomberg. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
The discount for Western Canada Select widened 90 cents a barrel to $10.15 below the price for WTI. Bakken oil’s premium added 75 cents a barrel to $2.25 above the U.S. benchmark.
Heavy Louisiana Sweet’s premium to WTI narrowed 15 cents to $25.25 a barrel while Light Louisiana Sweet lost 10 cents to $25.40 above the U.S. benchmark.
Among sour, or high-sulfur, grades, the premium for Mars Blend decreased 10 cents to $21 a barrel and Poseidon added 35 cents to $19.35 a barrel over WTI.
Southern Green Canyon’s premium increased $1.75 to $19.75 a barrel and West Texas Sour’s discount widened 5 cents to 75 cents a barrel. Thunder Horse’s premium increased 50 cents to $23.25 above the benchmark.
--Editors: David Marino, Richard Stubbe
To contact the reporter on this story: Aaron Clark in New York at email@example.com
To contact the editor responsible for this story: Dan Stets at firstname.lastname@example.org