July 12, 2017 / 6:47 PM / 2 months ago

Syncrude cuts July forecast to 5.2 million barrels from 8.4 million barrels: sources

CALGARY, Alberta (Reuters) - Syncrude Canada has cut its July production forecast for the second time in a week, two sources familiar with the matter said on Wednesday, as the northern Alberta plant continues to run below full capacity for a fifth straight month.

Syncrude Canada told customers that it was cutting its July forecast by around 3.2 million barrels to 5.2 million barrels, a 38 percent decrease, the sources said.

Last week, Syncrude told customers it was reducing its July supply forecast by 1.1 million barrels to 8.4 million barrels.

A Syncrude company spokesman could not be reached immediately for comment.

Syncrude, majority owned by Suncor Energy Inc (SU.TO), is still in the process of ramping back up to full capacity after a fire in March, which prompted the company to bring forward planned maintenance.

On Monday, a small fire broke out in a sulphur emissions reduction unit at the facility. It is not clear if the latest cuts are a result of that fire.

Light synthetic crude prices for August delivery last traded at $1.40 a per barrel over the West Texas Intermediate benchmark, according to Shorcan Energy brokers, having settled at 95 cents barrel over WTI on Tuesday.

Reporting by Catherine Ngai; Editing by David Gregorio and Diane Craft

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