Bloomberg News

Canadian Crudes Weaken Ahead of Midwest Refinery Maintenance

July 26, 2012

Canadian oils weakened ahead of planned refinery maintenance later this year that will curb demand for the grades.

BP Plc (BP/)’s Whiting refinery in Indiana will shut a crude unit and several compressors next month for six to eight weeks of work, a person with knowledge of operations said July 10. Marathon Petroleum Corp. will shut its Detroit refinery for maintenance by Sept. 6, a person with direct knowledge of the plans said March 1.

Syncrude weakened $6.50 to a discount of $3.50 versus West Texas Intermediate at 12:08 p.m. in New York, according to data compiled by Bloomberg. Syncrude is a synthetic oil upgraded from tar-like bitumen in Alberta into refinery-ready crude.

Western Canada Select’s discount widened $1 to $20 below WTI. Bakken oil’s discount to WTI weakened $1 to $4 a barrel.

On the U.S. Gulf Coast, sweet oil premiums narrowed against WTI. Heavy Louisiana Sweet’s premium to the U.S. benchmark slipped 75 cents to $15.75 a barrel. Light Louisiana Sweet’s premium to WTI lost $1 to $16.50.

Poseidon’s premium added 80 cents to $10.05 a barrel. Southern Green Canyon rose 50 cents to $9.50 over WTI. Mars Blend increased 80 cents to $11.05 a barrel over the U.S. benchmark.

The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, increased $1.45 a barrel to $12.75.

To contact the reporter on this story: Aaron Clark in New York at

To contact the editor responsible for this story: Bill Banker at

Steve Ballmer, Power Forward
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