Heavy grades slip as traders eye Gulf Coast shutdowns

29 Aug 2017   Canada, Tar Sands

Canadian heavy crude differentials widened on Monday in quiet trade as some market players anticipated refinery shutdowns in the storm-hit U.S. Gulf Coast region backing up crude supplies in Canada. Torrential rain in the aftermath of Hurricane Harvey has caused catastrophic flooding along the Gulf Coast, prompting refiners in the region to shut operations as a precaution. In total, 2.45 million barrels per day, or 13 percent, of U.S. refining capacity is offline. Western Canada Select heavy blend crude for October delivery last traded at $10.35 per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy brokers, widening from $9.90 per barrel under the benchmark on Friday. One Calgary-based trader said there could be reduced demand for Canadian heavy from Gulf Coast refiners for the next few months, although […]

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