Canada crude - Prices fall on increased pipeline apportionment

Wed Feb 26, 2014 7:25pm EST
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* March WCS trades at $24.00/bbl below WTI

* March synthetic trades at $3.25/bbl below WTI

CALGARY, Alberta Feb 26 (Reuters) - Canadian cash crude prices weakened on Wednesday after Enbridge Inc announced further apportionment on one of its main export pipelines and a leak at the company's Griffith, Indiana, crude terminal forced a temporary pipeline shutdown.

Western Canada Select heavy blend for March delivery settled at $24.00 per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy brokers.

That compares with a settlement price on Tuesday of $22.50 per barrel below WTI.

Light synthetic crude from the oil sands for March delivery also weakened to $3.25 per barrel below the benchmark, compared with a settlement price on Tuesday of $1.25 per barrel below WTI.

Two trading sources said Enbridge had rationed space on the 231,000 barrel-per-day Line 6B by a further 35 percent in March.

That is in addition to 10 percent March apportionment announced last week for Line 6B, which carries crude between Griffith, Indiana, and Sarnia, Ontario.

Pipeline apportionment can weigh on prices as it fans concerns that oil sands crude will get bottlenecked in Alberta.   Continued...