Feb. 2 (Bloomberg) -- Oil discounts for Alberta and North Dakota crudes weakened to record levels as producers boosted output and forecast growth.
Syncrude production increased 11 percent in January from the previous month to 313,200 barrels a day, Canadian Oil Sands Ltd., the largest shareholder in the joint venture project, said in a statement on its website. Output for 2012 is expected to be seven percent higher than last year, the company said yesterday.
The discount for Syncrude widened to the largest amount since at least 2006, dropping $2 to $8 below West Texas Intermediate at 1:49 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.
Western Canada Select’s discount to WTI weakened 75 cents to $28.75 a barrel, the cheapest in almost a year. Bakken oil weakened to the largest discount since at least 2010, dropping $7.25 to $12.25 below the U.S. benchmark.
In the U.S. Gulf Coast, Light Louisiana Sweet’s premium to WTI gained $1.80 to $14.55 a barrel. Heavy Louisiana Sweet increased $1.50 to $17.25 over the U.S. benchmark.
Thunder Horse’s premium to WTI gained $1.50 to $14.75 and Mars Blend’s rose $2.10 to $12.50. Poseidon’s premium strengthened $1.90 to $12.40 a barrel.
Southern Green Canyon increased $1.25 to $11.50 over WTI. West Texas Sour’s discount widened 80 cents to $3 a barrel.
--Editors: Bill Banker, Margot Habiby
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