Canada crude-High refiner inventories pressure spreads

* Western Canada Select heavy $15-$15.30/bbl under WTI

* Synthetic crude about $0.85-$1.20/bbl a barrel under

* Spreads widen on pipeline restrictions, high stocks

CALGARY, Alberta, Oct 26 (BestGrowthStock) – Canadian cash crude
spreads have widened slightly amid pipeline restrictions on the
Enbridge Inc (ENB.TO: ) network as well as high inventories
following the summer’s pipeline outages, market sources said on
Tuesday.

The price differentials for December business are a bit
weaker than last year at this time, but are much narrower than
they were in September, when Enbridge was dealing with outages
on two of its major U.S. pipelines.

Western Canada Select heavy blend for December delivery was
quoted at $15-$15.30 a barrel under U.S. benchmark West Texas
Intermediate light crude, compared with around $14.25-$14.85
under WTI last week for November barrels.

Light synthetic for December was talked at 85 cents to
$1.20 a barrel under WTI. The range last week for November
crude was 75 cents to 90 cents under.

“I think a lot of the refiners had a whole bunch of barrels
that they loaded up with at lower differentials when the
pipelines were down — 6A and 6B — and so some of the guys had
maximum runs when crack spreads were pretty good on the West
Coast and in the Midcontinent,” a trader said.

“In December they’ve probably got high inventories and they
need to get those down.”

WTI was hovering close to unchanged at $82.52 a barrel on
Tuesday, consolidating after two days of gains as the U.S.
dollar rose and ahead of a report expected to show an increase
in U.S. crude oil stockpiles. [ID:nSGE69P09P]

Last week, Enbridge announced it was chopping shipper
nominations on a number of its lines due to overbooking and
some capacity restrictions.

It cut nominated volumes on Lines 5, 6A, 14 as well as the
portion of line 62 running downstream of Superior, Wisconsin,
by 9 percent for November. [ID:nN22185830]

It was a busy autumn for oil sands plant and refinery
maintenance. Much of the work has been wrapping up in recent
weeks.

Suncor Energy Inc (SU.TO: ) said on Monday it restarted units
at its 135,000 bpd Edmonton, Alberta, refinery, which were shut
for planned work on Oct. 12.

The alkylation unit at the company’s 80,000 bpd Sarnia,
Ontario, plant is due to restart this week after six weeks of
work. [ID:nWNA9658]

Suncor restarted an upgrader at its 350,000 bpd Alberta oil
sands plant on Oct. 17 following six weeks of upkeep.

Husky Energy Inc (HSE.TO: ) is expected to start up its
82,000 bpd Lloydminster heavy oil upgrader in the coming weeks
following two months of maintenance.

In major markets for Canadian crude, Exxon Mobil Corp
(XOM.N: ) said an equipment failure Friday on its 238,600 bpd
refinery in Joliet, Illinois, was related to scheduled
maintenance at its processing units. [ID:nWEN1695] That work is
due to last several weeks.

Last week, Tesoro Corp (TSO.N: ) told a Washington state
agency that the crude unit at its 120,000 bpd Anacortes
refinery had restarted for the first time since a deadly April
explosion. [ID:nN20224600] It gets its crude from Kinder
Morgan’s (KMP.N: ) Trans Mountain pipeline from Alberta.
(Reporting by Jeffrey Jones; editing by Rob Wilson)

Canada crude-High refiner inventories pressure spreads