CALGARY, Alberta, July 23 (Reuters) – Canadian heavy crude
prices weakened in thin trade on Tuesday, pushed lower by
anticipation of increased supply from Imperial Oil’s
Kearl oil sands project.
West Canada Select heavy blend for August delivery last
traded at $17 dollars per barrel below the West Texas
Intermediate benchmark, according to Shorcan Energy brokers.
That compares with a settlement price on Monday of $15.90
per barrel below WTI.
Trading activity was subdued however, as the Canadian crude
market is currently outside the “trading window” – a roughly
three-week period beginning on the first day of each month and
lasting until pipeline nominations are due.
There was little reaction to news that shippers on Kinder
Morgan Energy Partners LP’s over-booked 300,000 barrel
per day Trans Mountain oil pipeline would be limited to only 31
percent of their hoped for volumes in August.
One Calgary-based crude trader said that level of
apportionment was standard on the pipeline.
“Mostly Kearl production is trending differentials wider,”
he added.
Imperial Oil last month said output from the Kearl Oil Sands
project in Northern Alberta would reach full capacity of 110,000
bpd over the summer.
There were no trades in light synthetic crude from the oil
sands for August delivery reported by Shorcan Energy brokers on
Tuesday. Monday’s settlement price was $3 per barrel above WTI.
