Canada crude - Prices steady in light trade

Wed Aug 14, 2013 6:30pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* September WCS trading at $22.40/bbl below WTI

* September synthetic at $3.75/bbl premium to WTI

CALGARY, Alberta Aug 14 (Reuters) - Canadian crude prices were little changed on Wednesday, with traders reporting thin volumes as the market looked ahead to news of pipeline apportionment next week.

Traders will find out whether Enbridge Inc will ration space on pipelines carrying Canadian crude to U.S. markets, in the first apportionment since regulators approved plans to change how the company calculates how much crude shippers can nominate.

High apportionment would likely push prices lower on concerns crude will get bottlenecked in Canada.

Western Canada Select heavy blend for September delivery last traded at $22.40 per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy Brokers.

That compares with a settlement price of $22.80 per barrel below the benchmark on Tuesday.

Heavy crude prices have dipped in recent weeks as production from Imperial Oil's Kearl oil sands project reached the market and as traders braced for seasonal refinery maintenance in the autumn.

But Martin King, analyst at FirstEnergy Capital in Calgary, said heavy grades may start to strengthen next month as a result of BP Plc's modernization project at its 413,000 barrel per day Whiting, Indiana, refinery.   Continued...