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Canada crude - Heavy grades rise on demand boost
January 15, 2013 / 9:42 PM / 5 years ago

Canada crude - Heavy grades rise on demand boost

* February WCS quoted at $37.55/bbl under WTI
    * February synthetic bid/ask is $0.50/$1.10 per bbl over WTI

    CALGARY, Alberta, Jan 15 (Reuters) - Canadian heavy crude
oil prices strengthened on Tuesday on higher demand from Midwest
refineries. 
    Western Canada Select heavy blend for February delivery last
traded at $37.55 per barrel below the West Texas Intermediate
benchmark, according to Shorcan Energy Brokers.
    That compares with a settlement price on Monday of $39.25
per barrel under the benchmark and last week's lows of more than
a $40 per barrel discount after Enbridge Inc imposed
mid-month apportionment on three of its lines that export
Canadian crude to the United States.
    When pipelines set apportionment, they reduce the actual
volumes that shippers can move from amounts nominated. Because
less crude can move through the pipeline, backlogs occur.    
    The 796,000 barrel-per-day Line 4, between Edmonton,
Alberta, and Superior, Wisconsin, and 450,000 bpd Line 67,
between Hardisty, Alberta, and Superior, are apportioned at 10
percent. Line 6A, which can carry 609,000 bpd between Superior
and Griffith, Indiana, is apportioned at 16 percent.
    Prices were also affected by refinery outages. Phillips 66
 said on Tuesday that it returned a crude unit to service
at the 365,000 barrel per day Wood River, Illinois refinery,
though the unit is said to process light oil. 
    As, well Genscape reported that Marathon Oil Corp 
had restarted an 86,000 bpd crude unit at its 212,000 bpd
Catlettsburg, Kentucky, refinery.
    There were no trades for light synthetic crude from the oil
sands for February delivery. Shorcan reported a bid/ask spread
for the crude of $0.50/$1.10 per barrel over West Texas
Intermediate. February synthetic settled on Monday at $0.65 per
barrel over the benchmark.

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