(Reuters) - The Syncrude oil sands site in northern Alberta is commissioning its steam systems, taking an important step toward restarting, its majority owner Suncor Energy Inc (SU.TO) said on Wednesday.
The facility, which can produce up to 360,000 barrels per day of crude oil, was hit by a power outage last month and was expected to remain down through July.
There was no update on the timing of restarting production, said Suncor spokeswoman Sneh Seetal.
The idled Syncrude site is one of several supply disruptions that boosted global oil prices last week. Brent oil rose on Wednesday, driven higher by a threat from an Iranian commander and a drop in U.S. crude inventories for the second week in a row.
The temporary loss of Syncrude oil production has eased space constrictions on Western Canadian pipelines and trains. A discount on Western Canada Select (WCS) heavy crude versus U.S. futures widened slightly on Wednesday, as traders factored in rumors that Syncrude could restart this month and put more strain on the transport system.
Reporting by Rod Nickel in Winnipeg, Manitoba; editing by G Crosse