Heavy Alberta oil strengthened after Imperial Oil Ltd (IMO) said its Kearl oil-sands project that had been scheduled to start production this year may come online in January.
Startup of the oil-sands mine has been slowed because an early winter, Chief Executive Officer Bruce March said following a presentation at the Canadian Association of Petroleum Producers’ investor symposium in Toronto. Imperial planned to begin production at the Kearl site at 110,000 barrels a day by the end of this year, Pius Rolheiser, a company spokesman, said in a July 11 e-mail.
Western Canada Select for January delivery rose 65 cents to a $32.10-a-barrel discount to U.S. benchmark West Texas Intermediate as of 12:06 p.m. New York time, according to Net Energy Inc., a Calgary oil broker. The grade’s February discount narrowed $1 to a $31 discount.
Syncrude’s premium for January delivery gained 95 cents to $2.45 a barrel above WTI, according to Net Energy.
In the U.S. Gulf Coast, West Texas Sour strengthened after Phillips 66 said maintenance at its 146,000 barrel-a-day Borger refinery in Texas had been completed.
West Texas Sour’s discount to WTI narrowed $2 to $15.50 a barrel, according to data compiled by Bloomberg at 1:56 p.m. in New York.
Light Louisiana Sweet’s premium increased $1.15 a barrel to $22.65 above WTI. Heavy Louisiana Sweet rose $1.10 to $22.35.
Poseidon’s premium widened 75 cents to $17.25. Mars Blend increased 85 cents to $17.10 a barrel over WTI, and Southern Green Canyon gained 85 cents to a $18.50 premium.
The premium for Thunder Horse, a sour crude with lower sulfur content than Mars, Poseidon and Southern Green Canyon, widened 75 cents to $19.75 above WTI.
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