West Texas Sour (WTS) crude has weakened to a seven month low relative to the US benchmark as output in the Gulf of Mexico and refinery maintenance in the region reduced demand for crudes from the Permian Basin.
WTS weakened by US$ 1.05 to a discount of US$ 3.25/bbl below West Texas Intermediate (WTI), according to data compiled by Bloomberg.
WTI weakened against the benchmark grade, falling 45 cents to a discount of US$ 1.75/bbl.
Canadian Syncrude weakened by 25 cents to a discount of US$ 12.bbl to WTI in Cushing after Suncor Energy Inc. completed maintenance on an upgrader in Fort McMurray, Alberta.
Western Canada Select, a sour blend of Canadian crudes, strengthened by 50 cents to a discount of US$ 32.50 below WTI.
Gulf of Mexico output
Only 91 000 bpd of Gulf oil production was shut in yesterday as a result of Tropical Storm Karen. More than 2.9 million bbls had been halted over the previous four days.
Refinery planned maintenance
Valero Energy Corp. (VLO) began maintenance at its refinery in Three Rivers, Texas, over the weekend.
The 100 000 bpd plant uses primarily Eagle Ford crude, which can be piped to Houston. Crude from the Permian Basin, the largest oil field in the US, also moves to the Houston area pipelines that went into service this year from Magellan Midstream Partners LP (MMP) and Sunoco Logistics Partners LP (SXL).
Refineries in Louisiana and Texas with a combined capacity of 2.3 million bbls are undergoing plant maintenance during October, according to data compiled by Bloomberg.
Edited from various sources by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/09102013/west_texas_crude_weakens730/