Canadian oils strengthened on the spot market after BP Plc (BP:US) finished starting a new crude unit at its Whiting, Indiana refinery, increasing demand.
The restart of the unit brings the plant back to its nameplate capacity of 413,000 barrels a day, company said yesterday. The refinery will initially process mostly light sweet grades, the company said, and will increase heavy, sour crude to about 80 percent of its total after new coking and hydrotreating units are commissioned.
Western Canadian Select, a blend of heavy oil including bitumen from the oil sands, strengthened by $2.15 a barrel to a $12.10 discount to WTI at 1:33 p.m. mountain time, according to Calgary oil broker Net Energy Inc.
Syncrude, a light crude from oil-sands bitumen processed in an upgrader, strengthened $3.25 a barrel to a premium of $6.25 to WTI, according to Net Energy.
Enbridge Inc. (ENB) restarted its Wood Buffalo pipeline that connects to Edmonton-bound Line 18, the Waupisoo line, the pipeline company based in Calgary said in a release today. It and other lines connecting oil sands production with storage in Hardisty, Alberta, and Edmonton were closed after a leak on June 22.
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