CANADA CRUDE-Synthetic rises, supply outages drag on
* June WCS trades at $12.00/bbl below WTI
* June synthetic trades at $1.45/bbl above WTI
By Nia Williams
CALGARY, Alberta, May 16 (Reuters) - Canadian synthetic
crude differentials climbed on Monday as oil sands production
outages from a massive wildfire in the Fort McMurray region of
northern Alberta dragged on.
Around 1 million barrels per day of oil sands crude was shut
in early this month because of the out-of-control fire that
swept through the region, torching parts of oil sands hub Fort
McMurray and forcing some projects to evacuate workers as a
precaution.
Royal Dutch Shell (Xetra: A0ET6Q - news) restarted some output at its
255,000 barrel per day Albian Sands mine on last week and Suncor
Energy said it is working on bringing back production at
its 350,000 bpd base plant, but synthetic crude supply in the
region remains well below normal levels.
Light synthetic crude from the oil sands for June delivery
last traded at $1.45 per barrel over the West Texas Intermediate
benchmark, according to Shorcan Energy brokers, strengthening
from Friday's settle of $1.05 per barrel above the benchmark.
The fire is burning around 1 kilometre away from Enbridge (Dusseldorf: EN3.DU - news)
Inc's Cheecham tank farm, Alberta officials said on
Monday, underscoring the ongoing disruptions to some critical
infrastructure in the region.
Western Canada Select heavy blend crude for June delivery
traded at $12.00 per barrel below WTI, widening 15 cents from
Friday's settle of $11.85 per barrel under the benchmark.