U.S. Cash Crude-Bakken grades jump to near 3-year high on Alberta wildfire shut-ins
May 9 (Reuters) - U.S (Other OTC: UBGXF - news) . Bakken differentials rose on Monday
to the strongest in nearly three years as traders hurried to buy
the crude on worries about supply constraints due to a raging
wildfire in Canada's Alberta province.
The move follows Syncrude Canada cutting estimated
production volumes by some 35 percent in May after a wildfire
forced the company to close its mines and upgrader operations
over the weekend, sources said.
U.S. Bakken for June settled at 40 cents a barrel over WTI
from 35 cents a barrel below WTI on Friday, according to Shorcan
Energy Brokers. That was the strongest since July 2013.
Canadian crude prices climbed further on Monday as the
wildfire entered a second week, with offline capacity estimated
at around 1 million barrels per day.
Light, sweet barrels in the U.S. Gulf got a boost, with
traders expecting barrels to possibly move inland as a result of
the production curbs.
* Light Louisiana Sweet (WTC-LLS) for June delivery rose
20.5 cents to a midpoint of $2.13 and traded between $2.05 and
$2.15 a barrel premium to U.S. crude futures.
* Mars Sour (WTC-MRS (LSE: MRS.L - news) ) rose 3 cents to a midpoint of -$3.22
and traded between $3.20 and $3.25 a barrel discount to U.S.
crude futures.
* WTI Midland (WTC-WTM) rose 7 cents to a midpoint of -$0.13
and traded at a 10 cent a barrel discount to U.S. crude futures
.
* West Texas Sour (WTC-WTS) rose 17.5 cents to a midpoint of
-$1.1 and traded at a $1.20 a barrel discount to U.S. crude
futures.
* WTI to East Houston traded at $1.75 a barrel over WTI.
* ICE Brent July futures fell $1.74 to settle at
$43.63 a barrel.
* WTI June crude futures fell $1.22 cents to settle
at $43.44 a barrel.
* The Brent/WTI spread (WTCLc1-LCOc1) widened by 45 cents to
settle at 40 cents.
(Reporting by Catherine Ngai; Editing by Richard Chang)