October 23, 2013 / 10:21 PM / in 4 years

Canada crude - Heavy prices slip to two-week lows

CALGARY, Alberta, Oct 23 (Reuters) - Canadian heavy crude prices weakened to two-week lows on Wednesday after pipeline company Enbridge Inc told shippers space would be rationed on five crude lines in November.

Increased rationing on Enbridge’s export network tends to push crude prices lower on concerns about production getting bottlenecked in Canada.

Line 6B, which carries 231,000 barrels per day between Griffith, Indiana, and Sarnia, Ontario, will be apportioned by 36 percent next month, and space on four other Enbridge lines will also be rationed.

Western Canada Select heavy blend for November delivery last traded at $32 per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy brokers. That would be the widest differential since Oct. 9, according to Reuters data.

On Tuesday, Canadian crude settled at $29.50 per barrel below the benchmark.

Traders said rising apportionment caused problems for shippers looking to move their crude out of Canada.

“The higher it goes, the more people will cheat or get creative with their nominations, which fuels it (apportionment) to go higher,” one Calgary trader said.

Light synthetic crude from the oil sands for November delivery traded at $9.50 below WTI, little changed from Tuesday when it traded at $9.75 below the benchmark.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below