Canada crude - Heavy grades edge away from 10-month low

Wed Nov 6, 2013 6:15pm EST
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* Dec WCS trades at $41.00/bbl below WTI

* Dec synthetic trades at $15.00/bbl below WTI

CALGARY, Alberta Nov 6 (Reuters) - Canadian heavy crude prices steadied on Wednesday after a recent fall to 10-month lows, but looked likely to remain under pressure from limited pipeline capacity and unplanned refinery outages.

Western Canada Select heavy blend for December delivery last traded at $41.00 per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy brokers.

That was slightly higher than Tuesday's settlement of $41.50 per barrel below the benchmark, which was the widest differential since January.

Pipeline company Enbridge Inc rationed space on additional pipelines in November, meaning producers are unable to ship as much crude as they would like to market and oil is getting stranded in Alberta, driving prices lower.

Meanwhile, fires at Citgo Petroleum Corp's 174,500 barrel per day Lemont, Illinois, refinery and the 130,000 bpd Co-op refinery in Regina, Saskatchewan, have reduced demand for crude.

Delays in starting up a new coker that would process more heavy crude at BP PLC's 405,000 bpd Whiting, Indiana, refinery and increasing production at Imperial Oil's 110,000 bpd Kearl oil sands project also mean supply is outweighing demand.

Suncor Energy Inc, Canada's largest energy company, said on Wednesday its average oil sands production rose 2.7 percent month-on-month to 375,000 bpd.   Continued...