CALGARY, Alberta, Jan 21 (Reuters) – Canadian heavy crude
prices were steady on Tuesday, with trading volumes very thin
following the close of the January trading window.
Western Canada Select heavy blend for February delivery last
traded at $18.75 per barrel below the West Texas Intermediate
benchmark, according to Shorcan Energy brokers, unchanged from
Monday’s settlement price.
WCS for March delivery changed hands at $18.50 per barrel
below the benchmark.
The Canadian crude market is currently outside the nearly
three-week-long trading “window” – between the first of the
month until the day before pipeline nominations are due – when
the bulk of market activity takes place.
Traders were awaiting news on whether Enbridge Inc,
whose pipelines carry the bulk of Canadian crude exports to the
United States, would ration more space on its network in
February.
Kinder Morgan Energy Partners LP said crude oil
nominations on its 300,000 barrel per day Trans Mountain
pipeline between Alberta and the Pacific Coast are
oversubscribed by 70 percent next month.
High apportionment of pipeline capacity can drive Canadian
crude prices lower on concerns production will get bottlenecked
in Alberta.
On the demand side, news that Citgo Petroleum Corp plans to
restart a repaired 75,000 bpd vacuum distillation unit at its
174,500 bpd Lemont, Illinois, refinery by Jan. 29, helped
support prices.
However, Phillips 66 said there was a small unit
fire that began after a leak at its 333,000 barrel per day (bpd)
joint-venture refinery in Wood River, Illinois
Energy intelligence firm Genscape reported on Tuesday that a
65,000 bpd coker unit was shut down at the refinery. A company
spokesman did not comment on the status of the coker unit.
(Reporting by Nia Williams, editing by G Crosse)
