Canadian and Bakken crude grades strengthened against the benchmark U.S. oil price as TransCanada Corp.’s Keystone pipeline returned to service.
The 590,000-barrel-a-day pipeline was shut down unexpectedly for five days, constraining crude flows from Canada and North Dakota, when an “anomaly” was found on the pipeline during routine work. The line will run at reduced pressure today, TransCanada spokesman James Millar said in an e-mail.
Syncrude, a synthetic light Canadian blend, regained its premium to West Texas Intermediate, rising $3.25 to trade at 75 cents a barrel above WTI at noon in New York, according to data collected by Bloomberg. It was trading at a $4 premium before the Keystone maintenance began.
Bakken crude from North Dakota halved its discount to $1 a barrel below WTI. It had traded at a $1.75 premium before the Keystone maintenance. Keystone doesn’t transport Bakken crude, though the grade competes for space with Canadian crudes on Enbridge Inc.’s pipeline that carries oil to the U.S. Midwest.
The spread between WTI and North Sea Brent crude widened for a second day, increasing 2.9 percent to $21.40 a barrel, making imported oil more expensive and boosting the price of some crude grades produced in the U.S. Gulf Coast.
Light Louisiana Sweet’s premium widened $1.50 to $20.75 a barrel, while Heavy Louisiana Sweet increased $1.50 to $20.75 over WTI.
Among sour grades Mars Blend gained $1.50 to trade at $14.50 a barrel above WTI, and Poseidon rose $1.25 to a $13.75 premium.