UPDATE 1-Canada crude-Spreads tight despite pipeline cuts

* Western Canada Select heavy $14.25-$14.85/bbl under WTI

* Synthetic crude about $0.75-$0.90/bbl a barrel under

* Spread tight despite line flow reductions, refinery work

CALGARY, Alberta, Oct 14 (BestGrowthStock) – Canadian crude oil
price spreads have tightened from last week, even as Enbridge
Inc (ENB.TO: ) cut flow rates on a major pipeline and refiners
conducted maintenance, market sources said on Thursday.

The narrow spreads follow a summer of price weakness as
Enbridge struggled with oil spills and outages on two U.S.
pipelines. Both have restarted in the past month.

However, the company, which ships most of Canada’s crude
oil exports to the United States, has cut flows on one of the
lines, 6A, by 26 percent to complete maintenance work.

The line moves crude to Griffith, Indiana, from Superior,
Wisconsin. Enbridge has said it still expects to make this
month’s scheduled deliveries. [ID:nN13274291]

Western Canada Select heavy blend for November delivery was
quoted on Thursday in a wide range of $14.25 to $14.85 a barrel
under benchmark West Texas Intermediate light crude. That was
25 cents to 50 cents narrower than assessments last week.

The October, WCS differential had ballooned to more than
$30 a barrel during the outages of Line 6A and 6B in
September.

Synthetic crude for November was discussed at 75 cents to
90 cents a barrel under WTI, close to last week’s discounts.

November WTI fell 32 cents to settle at $82.69 a barrel on
Thursday, as weak U.S. jobless claims data outweighed a
drawdown in U.S. crude and petroleum product inventories.
[ID:nSGE69D0AS]

Strong pricing, especially for Canadian heavy grades, is
surprising at the end of asphalt season and as refiners take
units down for maintenance, one trader said.

“The barrels are there. They are just dispersed kind of
weird right now, but slowly getting back to a steady state,”
the trader said.

A number of Canadian refineries and heavy oil and bitumen
upgraders are undergoing work.

Suncor Energy Inc (SU.TO: ) is conducting upkeep on its
refineries in Edmonton, Sarnia and Montreal. [ID:nWNA1785]
[ID:nWNA9658] [ID:nWNA1548].

Suncor is also in the midst of six weeks of oil sands
upgrader maintenance that has been reducing output by 35,000
bpd, or 10 percent.

Production at Syncrude Canada Ltd is expected average about
285,000 bpd for the remainder of the year, its largest
shareholder said late last month. [ID:nN24214885] That
represents a drop of about 19 percent from the operation’s
capacity.

Meanwhile, Husky Energy Inc (HSE.TO: ) took its 82,000 bpd
Lloydminster heavy oil upgrader down for planned upkeep in late
August. That work is expected to last two months.

In U.S. refinery news, Exxon Mobil Corp (XOM.N: ) said on
Thursday that a fire-damaged hydrotreater at its 238,600 barrel
a day plant in Joliet, Illinois, had been repaired. The unit,
which produces low-sulfur diesel, was shut Oct. 5 after a
compressor fire.
(Reporting by Jeffrey Jones; editing by Peter Galloway)

UPDATE 1-Canada crude-Spreads tight despite pipeline cuts