UPDATE 1-Canadian crude - Synthetic jumps on Syncrude coker shutdown

Mon Jun 10, 2013 5:32pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* July synthetic last at $11.25 per barrel above WTI

* July WCS last at $12.90 per barrel below WTI

CALGARY, Alberta, June 10 (Reuters) - Canadian light synthetic crude prices jumped sharply higher on Monday on expectations of lower supply after Syncrude Canada Ltd said a coker at its northern Alberta oil sands project would be shut for maintenance for the next 50 days.

Light synthetic crude from the oil sands for July delivery rose as high as $13.00 per barrel above the West Texas Intermediate benchmark, the strongest price since late September 2012.

It was last trading at a premium of $11.25 per barrel above WTI, according to Shorcan Energy Brokers, up from a settlement price of $4.50 per barrel over the benchmark on Friday.

Trading sources said data showing the impact on Syncrude production volumes would not be released until Tuesday.

Canadian Oil Sands Ltd, the largest shareholder in Syncrude, said it still expects output from the project to range between 100 million and 110 million barrels in 2013.

Work on the unit was originally scheduled to begin in the second half of the year, but plans for the shutdown were brought forward after an attached boiler unit was closed for unplanned maintenance last month.

Expectations of tighter supply were tempered slightly by news Suncor Energy Inc had completed planned maintenance on the 125,000 barrel per day U1 upgrader at its oil sands operation near Fort McMurray, Alberta.   Continued...