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Bloomberg: Canadian Crude Strengthens as Enbridge Fills Pipeline

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Heavy Western Canadian Select crude’s discount to West Texas Intermediate shrank to the least since 2012 as a new pipeline started and production sites were shut for maintenance. To read the entire article, go to http://bloom.bg/1FLETYu

Key observations

Heavy Western Canadian Select discount to the U.S. benchmark narrowed to $8.50 a barrel Monday, the smallest margin since September 2012, according to data from Bloomberg.

The grade’s absolute price rose 3 cents to $50.43, the highest since Dec. 4. WTI futures were $58.93 in New York.

The Enbridge Company reported that it filled a new 570,000-barrel-a-day pipeline last month. In part the pipeline adds to the inventory (in motion) storage. The Enbridge line will raise the amount of crude that can be shipped from Edmonton, in northern Alberta, south to the storage terminals located at Hardisty, Alberta. From Hardisty, crude can move by unit crude oil trains either south to the upper Midwest or to the southern US state refineries. Or west towards markets along the Pacific Ocean coast or for export to Asia.