Bakken crude in Clearbrook, Minnesota, was heard traded Monday
morning at its highest level in almost five months alongside the
continued rise of light sweet crudes on turnarounds in Canada,
sources said.
Specifically, Bakken was heard traded on an ex-Clearbrook basis flat
to the NYMEX April light crude futures calendar-month average. This
was the highest traded level heard since October 2, when it was
heard done for November delivery, also flat to the WTI CMA.
Bakken sources in the US had expected strength, but were confused as
to the pronounced increase in price. Bakken ex-Clearbrook was last
heard traded Thursday for April at WTI CMA minus 60 cents/b.
Sources pointed to higher Syncrude prices in Canada, which
themselves had been pulled up by upgrader outages, as an influence
for stronger Bakken ex-Clearbrook prices. Upgraders typically take
in various grades of crude, including Mixed Sweet crude in Canada,
and "upgrade" the feedstock into synthetic crude production.
Canada's benchmark light crude, Syncrude Sweet premium, rose
sharply last week following reports that Syncrude, a joint
production venture among Canadian Oil Sands, Imperial and others,
announced it would begin maintenance in late March that would last
six-to-eight weeks. SSP was traded at WTI CMA plus $5/b Monday, its
highest level since June 25, 2013.
Mixed Sweet was heard traded Monday at WTI CMA minus $1.50/b, up 35
cents from Friday. Last week, following news of the upgrader
maintenance, the grade climbed as high as minus $1.45/b, its highest
point since October 2015.
Bakken crude generally occupies and competes in the same supply pool
as Mixed Sweet crude.
"Syncrude is up because of the turnarounds," a Clearbrook market
participant said. "They were planned, so I'm surprised that the
pricing has gone up this much."
Another Bakken market participant described the strength in the
Clearbrook market as "crazy."
--Shameek Ghosh,
shameek.ghosh@platts.com
--Allen Reed,
allen.reed@platts.com
--Edited by Richard Rubin,
richard.rubin@platts.com
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