Canada crude-Spreads widen on pipeline restrictions

* Western Canada Select $17-$17.75/bbl under WTI

* Light synthetic $2.30-$3/bbl under WTI

* Enbridge bottleneck seen pressuring differentials

CALGARY, Alberta, Dec 7 (BestGrowthStock) – Canadian crude oil
price spreads are weakening as volumes back up in Western
Canada due to high apportionment and pressure restrictions on
Enbridge Inc’s (ENB.TO: ) pipeline system, market sources said on
Tuesday.

Western Canada Select heavy blend for January was quoted at
$17-$17.75 a barrel below benchmark West Texas Intermediate
crude, compared with $15.75-$16.50 under WTI late last week.

Light synthetic was talked at $2.30-$3 a barrel under the
benchmark, 30 cents to $1 barrel wider than on Dec. 2.

WTI for January fell 69 cents to settle at $88.69 a barrel
on Tuesday as the U.S. dollar bounced from its lows and
cautious investors took profits. [ID:nL3E6N7088]

Last week, following an unplanned reduction in flow rate on
the 670,000 barrel a day Line 6A, Enbridge chopped nominations
on that pipeline, as well as lines 14 and 62, by 26 percent.

That was on top of 27 percent apportionment for December it
had already imposed.

Line 6A, which runs to Griffith, Indiana, from Superior,
Wisconsin, and 6B, to Sarnia, Ontario, from Griffith, were
already running at reduced pressure after ruptures caused oil
spills in Illinois and Michigan in the summer.

Market sources said the pipeline bottleneck was leading to
stronger differentials with U.S. Gulf crudes, as Midwest
refiners look for alternative supplies.
(Reporting by Jeffrey Jones; editing by Rob Wilson)

Canada crude-Spreads widen on pipeline restrictions