Bloomberg News

Bakken Oil Weakens Prior to Tesoro’s North Dakota Refinery Work

May 30, 2012

Bakken oil weakened to the widest discount in more than six weeks versus U.S. benchmark West Texas Intermediate prior to a planned shutdown at Tesoro Corp. (TSO:US)’s refinery in Mandan, North Dakota.

The 58,000-barrel-a-day refinery will halt the crude unit in early June for about two weeks of work, two people with knowledge of the situation said in December. A shutdown to tie in equipment that will boost the plant’s capacity by 10,000 barrels a day is scheduled for late in the second quarter, Chief Operating Officer Daniel Romasko said during a Feb. 2 conference call.

Bakken oil’s discount to WTI widened $2.50 to $7.50 a barrel at 1:54 p.m. in New York, according to data compiled by Bloomberg. That’s the widest discount for the grade since April 13.

Western Canada Select’s discount to WTI widened $1.50 to $20.25 a barrel, the most since April 10. Syncrude’s discount weakened 55 cents to $4.25 below the U.S. benchmark. That’s the largest discount for the grade since March 30.

U.S. Gulf Coast crude grades strengthened. Light Louisiana Sweet’s premium to WTI added 10 cents to $11.95 a barrel. Heavy Louisiana Sweet’s premium increased 85 cents to $14.85 a barrel.

Mars Blend’s added 40 cents to $10 a barrel and Poseidon’s increased 50 cents to $8.90. Southern Green Canyon’s premium added 10 cents to $8.60.

The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, was unchanged at $11 a barrel.

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


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Companies Mentioned

  • TSO
    (Tesoro Corp)
    • $76.62 USD
    • -1.73
    • -2.26%
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