Bloomberg News

Heavy Canadian Oil Falls Before BP Whiting Crude Unit Shutdown

July 03, 2012

Western Canada Select’s discount to West Texas Intermediate widened to the largest margin in more than three months before planned work at BP Plc’s Whiting refinery in Indiana.

The 420,000-barrel-a-day plant will shut equipment including crude unit 11A on Aug. 3 for 30 days of planned work, a person with knowledge of the plans said April 19.

Western Canada Select’s discount widened $3 to $30 a barrel below WTI at 11:41 a.m. in New York, according to data compiled by Bloomberg. That’s the cheapest the grade has traded at since March 22.

Syncrude’s discount widened 25 cents to $5.50 below WTI. Syncrude is a synthetic oil upgraded from tarlike bitumen in Alberta into refinery-ready crude.

Bakken oil’s discount was unchanged at $10 below the U.S. benchmark. The grade’s margin narrowed $4 yesterday after the Carlyle Group, a private-equity firm that’s taking over operations at Sunoco Inc.’s Philadelphia refinery, said the plant will process oil delivered by rail from North Dakota’s Bakken formation.

On the U.S. Gulf Coast, Heavy Louisiana Sweet’s premium to WTI widened 90 cents to $14 a barrel. Light Louisiana Sweet’s premium added 65 cents to $12.90 a barrel.

Poseidon’s premium to WTI increased 25 cents to $8 a barrel. Southern Green Canyon’s premium increased 25 cents a barrel to $7.50. Mars Blend added 35 cents to $9.10 a barrel over WTI.

Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, increased 20 cents to $11 a barrel over WTI.

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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