Bakken oil’s discount to West Texas Intermediate narrowed before the completion of an expansion at Tesoro Corp. (TSO:US)’s Mandan refinery in North Dakota that will boost demand for the grade.
The San Antonio-based company will finish the project “by the latter part of this month,” Greg Goff, the company’s chief executive officer, said in a June 7 statement posted on the company’s website. The refiner is increasing the plant’s capacity by 10,000 barrels to 68,000 barrels a day. The plan runs mostly low-sulfur crude from North Dakota, according to the company’s website.
Bakken oil’s discount to WTI narrowed $2.50 a barrel to $6 at 12:09 p.m. in New York, according to data compiled by Bloomberg.
Syncrude strengthened to a premium to the U.S. benchmark, gaining $1.50 to $1 more than WTI. Syncrude is a synthetic oil upgraded from tar-like bitumen in Alberta into refinery-ready crude.
Western Canada Select’s discount narrowed 25 cents to $21.75 a barrel.
In the U.S., Gulf Coast grades weakened. Light Louisiana Sweet’s premium lost 10 cents to $12 a barrel. Heavy Louisiana Sweet decreased 10 cents to $12.65 over WTI.
Poseidon’s premium to WTI narrowed 20 cents to $8.50 a barrel, while Southern Green Canyon’s decreased 60 cents to $7.65.
Mars Blend’s premium narrowed 40 cents to $9 a barrel. Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, lost 65 cents to $11 a barrel over WTI.
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