MONTREAL, Sept 14 (Reuters) - Prices for Canadian crude are continuing to tumble as Enbridge Inc's pipeline woes keep supplies out of the U.S. Midwest.
A market source said on Tuesday that the price of medium-heavy blend Western Canada Select for October delivery was being quoted at $30.50 below benchmark West Texas Intermediate, down from $27.50 under on Friday and $22 below WTI in early September
Enbridge was set to complete repairs on its major 670,000 barrel per day crude oil Line 6A on Tuesday, six days after a leak on the line halted the flow of nearly a quarter of Canada's crude shipments to U.S. refiners. The line has not yet resumed shipments.
The leak on Line 6A on Sept. 9 occurred just six weeks after Enbridge's Line 6B pipeline ruptured in southern Michigan and caused one of the largest pipeline leaks in recent U.S. history.
Prior to the July 26 Line 6B spill, Western Canada Select had been trading for $15 under WTI prices.
Synthetic oil prices are being talked at $4.05 per barrel under WTI, up from a discount of $4.10 last Friday. However at the beginning September, before Line 6A was closed, synthetic crude was selling for just $3 less than WTI.
On the New York Mercantile Exchange, crude for October delivery settled down 39 cents, or 0.51 percent, at $76.80 a barrel, though prices have strengthened by more than $2.50 a barrel since the major pipeline was closed.
Though trading was slow on Friday, as the market waited for word on how long Line 6A would be closed, the market has now become more active as some players buy oil and wait for prices to recover before reselling.
'There are some people in the market who are trying to take advantage of these prices,' a source said.
Neither Enbridge nor U.S regulators have said when Line 6A, which ships about 5 percent of U.S oil imports will resume shipments.
(Reporting by Scott Haggett; editing by Rob Wilson) Keywords: MARKETS CANCRUDE/ (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
A market source said on Tuesday that the price of medium-heavy blend Western Canada Select for October delivery was being quoted at $30.50 below benchmark West Texas Intermediate, down from $27.50 under on Friday and $22 below WTI in early September
Enbridge was set to complete repairs on its major 670,000 barrel per day crude oil Line 6A on Tuesday, six days after a leak on the line halted the flow of nearly a quarter of Canada's crude shipments to U.S. refiners. The line has not yet resumed shipments.
The leak on Line 6A on Sept. 9 occurred just six weeks after Enbridge's Line 6B pipeline ruptured in southern Michigan and caused one of the largest pipeline leaks in recent U.S. history.
Prior to the July 26 Line 6B spill, Western Canada Select had been trading for $15 under WTI prices.
Synthetic oil prices are being talked at $4.05 per barrel under WTI, up from a discount of $4.10 last Friday. However at the beginning September, before Line 6A was closed, synthetic crude was selling for just $3 less than WTI.
On the New York Mercantile Exchange, crude for October delivery settled down 39 cents, or 0.51 percent, at $76.80 a barrel, though prices have strengthened by more than $2.50 a barrel since the major pipeline was closed.
Though trading was slow on Friday, as the market waited for word on how long Line 6A would be closed, the market has now become more active as some players buy oil and wait for prices to recover before reselling.
'There are some people in the market who are trying to take advantage of these prices,' a source said.
Neither Enbridge nor U.S regulators have said when Line 6A, which ships about 5 percent of U.S oil imports will resume shipments.
(Reporting by Scott Haggett; editing by Rob Wilson) Keywords: MARKETS CANCRUDE/ (scott.haggett@thomsonreuters.com; Reuters Messaging: scott.haggett.reuters.com@reuters.net; +1 403 531-1622) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.