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Canada crude - Prices fall on ample supply, Whiting delays

Wed, 02nd Oct 2013 22:05

* Nov WCS trading at $32.90/bbl below WTI

* Nov synthetic trading at $11.75/bbl below WTI

CALGARY, Alberta, Oct 2 (Reuters) - Canadian crude pricesextended losses on Wednesday, pushed lower by abundant supplyand delays in overhauling BP Plc's 405,000 barrels-per-dayWhiting, Indiana refinery.

Western Canada Select heavy blend for November delivery lasttraded at $32.90 per barrel below the West Texas Intermediatebenchmark, according to Shorcan Energy brokers.

That compares with a settlement price of $31.90 per barrelbelow the benchmark on Tuesday.

Market players said increasing production volumes atImperial Oil's Kearl oil sands project were pushing thedifferentials wider.

In addition, a planned overhaul of a crude distillation unitat Whiting has been moved back from October to November, sourcessaid.

The refinery is undergoing a $4 billion revamp to enable itto run cheaper heavy crude from Canada's oil sands but theproject, due to finish by the end of 2013, has been beset withdelays.

"There will be some further delays with the start-up ofWhiting. People were looking at late October or November and nowwe have got supply coming that we thought would be taken up,"said Martin King, analyst at FirstEnergy Capital in Calgary.

Light synthetic crude from the oil sands for Novemberdelivery also fell, trading $11.75 per barrel below WTI,compared with a settlement price on Tuesday of $10.60 per barrelbelow the benchmark.

It was the widest differential for synthetic crude since thefirst quarter of 2012, according to Reuters data.

Synthetic prices have dropped steadily since the summer,when they were trading at a premium to WTI, as production hasrisen at Syncrude's northern Alberta oil sands project.

Canadian Oil Sands Ltd, the largest-interest ownerin Syncrude said oil sands operations produced an average of291,000 barrels per day (bpd) in September, 38.6 percent higherthan in August.

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