Canadian cash crude prices slumped on Monday as growing volumes
and a host of refinery outages exacerbated a glut of supplies in
the U.S. Midwest and Midcontinent regions, Reuters reported.
It noted Western Canada Select heavy blend for July delivery was
last quoted at $25 under benchmark West Texas Intermediate,
compared with $21.50 a barrel under WTI on Friday, according to
Shorcan Energy Brokers. It was the deepest WCS discount since early
July light synthetic was last done for $8.75 a barrel under WTI,
a $2.25 wider spread than on Friday.
Reuters said Canadian crude prices have weakened since last
week, when repairs and maintenance on units at refineries including
BP Plc's (
) 405,000 bpd Whiting, Indiana, plant and Phillips 66's (
) 146,000 bpd Borger, Texas, facility put an oversupply of Canadian
barrels into sharper focus following months of tightening
Industry sources said on Monday that BP has no restart date set
yet for its 75,000 bpd crude distillation unit, which shut down on
Among other plants, maintenance work continues at Imperial Oil
Ltd's (IMO.TO) 187,000 bpd Strathcona refinery near Edmonton and at
its 121,000 bpd Sarnia, Ontario, facility, a company spokesman
In a research report, Credit Suisse attributed widening spreads
to increasing competition between the Canadian crudes and the North
Dakota Bakken, for which discounts have also deepened in recent
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