Heavy Canadian Crude Oil Slumps to Largest Discount Since July
January 11, 2012, 4:47 PM ESTBy Aaron Clark
Jan. 11 (Bloomberg) -- Western Canada Select oil weakened to the largest discount to West Texas Intermediate since July as higher oil imports into the U.S. Midwest and lower product prices threatened to cut refining margins.
The heavy grade sank 16 percent after producers such as Suncor Energy Inc. and Syncrude Canada Ltd. reported a rise in December production from the previous month. Exxon Mobil Corp. reported Jan. 5 a compressor associated with a coker at the Joliet refinery in Illinois shut.
Crude imports to the Midwest jumped 12 percent last week, Energy Department data show. Gasoline and diesel in the region tumbled to the lowest levels since March.
Western Canada Select’s discount to WTI widened $2.90 a barrel to $21 at 3:48 p.m. according to data compiled by Bloomberg.
Syncrude’s discount widened 20 cents to $3 below WTI. Syncrude is a light, low-sulfur synthetic oil derived from the tar sands in Alberta.
Among Gulf Coast grades, Light Louisiana Sweet’s premium to West Texas Intermediate added 25 cents to $10.75 a barrel. Heavy Louisiana Sweet’s premium gained 10 cents to $12.25 over the U.S. benchmark.
Thunder Horse’s premium increased 60 cents to $11. Mars Blend’s premium widened 80 cents to $8.50 over WTI. Poseidon’s premium added 50 cents to $8 a barrel.
Southern Green Canyon added 75 cents to $7.75 over WTI. West Texas Sour’s discount widened 60 cents to $3.50 a barrel.
--Editors: David Marino, Bill Banker
To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
