June 11, 2013 / 10:11 PM / 4 years ago

Canada crude - Synthetic rises on lower supply expectations

* July synthetic last at $12.75 per barrel above WTI

* July WCS last trading at $10 per barrel below WTI

CALGARY, Alberta, June 11 (Reuters) - Canadian light synthetic crude prices rose on expectations of lower supply on Tuesday, extending gains from Monday’s sharp jump higher when Syncrude Canada Ltd said a coker at its northern Alberta oil sands project would be shut for 50 days.

Two market sources told Reuters Syncrude production would be cut by 2.8 million barrels in July as a result. A spokeswoman for Canadian Oil Sands Ltd declined to comment.

Light synthetic crude from the oil sands for July delivery last traded at a premium of $12.75 per barrel over the West Texas Intermediate benchmark, according to Shorcan Energy Brokers.

That compares with a settlement price on Monday of $11.50 per barrel above the benchmark, which was the highest settlement in around nine months.

Heavy oil prices also climbed, helped by anticipation of increased demand from Exxon Mobil Corp’s 238,600 barrel per day Joliet, Illinois, refinery.

Genscape, an oil market intelligence service, said the refinery was ramping up activity after a shutdown that began in April.

Western Canada Select heavy blend for July delivery last traded at a discount of $10.00 per barrel below WTI, compared with a settlement price of $12.90 per barrel below the benchmark on Monday.

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