Bakken oil’s premium to West Texas Intermediate plunged after Marathon Petroleum Corp. (MPC:US) advanced maintenance at its Illinois refinery and TransCanada Corp. (TRP) planned to restrict some oils on its Keystone pipeline in July.
Marathon will shut a crude unit at its Robinson refinery in Illinois about June 9, a person familiar with the situation said June 1. The work was previously scheduled for July, according to the person.
TransCanada plans to temporarily restrict crudes on the Keystone pipeline with a Reid vapor pressure exceeding 8.5 pounds per square inch starting July 1, a person with knowledge of the plans said May 31. Light sweet crudes typically have higher vapor pressures than heavy oils.
Bakken oil’s discount widened $4.50 a barrel to $12 below U.S. benchmark WTI at 1:31 p.m. in New York, according to data compiled by Bloomberg. That’s the cheapest the graded has traded since March 23.
Syncrude’s discount to WTI widened $3.75 a barrel to $9, the cheapest the grade has traded since March 22. Western Canada Select’s discount widened $5.25 to $25 a barrel below the U.S. benchmark.
Most U.S. Gulf Coast crude grades also weakened. Light Louisiana Sweet’s premium to WTI lost 10 cents to $11.90 a barrel. Heavy Louisiana Sweet’s premium decreased 15 cents to $14.50 a barrel.
Mars Blend’s premium narrowed 35 cents to $9.75. Southern Green Canyon’s premium lost 25 cents to $9.50. Poseidon’s premium decreased 25 cents to $8.75.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, widened 40 cents to $11.80 a barrel.
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