Canada crude-Grades rise, but more weakness seen

Mon Nov 5, 2012 2:12pm EST
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* WCS quoted at $29.50/bbl under WTI

* Light synthetic quoted at $6.25/bbl under WTI

* Tight pipeline space, refinery outage are big factors

CALGARY, Alberta, Nov 5 (Reuters) - Canadian cash crude oil prices rose on Monday from last week's seven-month lows, but remained weakened by the effects of an unexpected pipeline shutdown and a lengthy outage at BP Plc's big Whiting refinery in Indiana, market sources said.

Western Canada Select heavy blend for December delivery was last quoted at $29.50 a barrel under benchmark West Texas Intermediate, up $2.15 a barrel from Friday's settle, according to Shorcan Energy Brokers.

December light synthetic, derived from the Alberta oil sands, fetched $6.25 a barrel under WTI, up $2.75 a barrel.

Traders did not view the improvement as a fundamental turnaround in a market that has weakened steadily over the past month.

"(There are) lots of barrels out there in November without a home," one market source said.

Last month, TransCanada Corp took its 590,000 barrel per day Keystone oil pipeline down for an unplanned five-day outage so it could investigate what it termed as a "small anomoly" detected on a section of the pipe.   Continued...