UPDATE 1-Canadian oil prices jump as traders brace for supply constraint

Published 2016-05-09, 04:00 p/m
© Reuters.  UPDATE 1-Canadian oil prices jump as traders brace for supply constraint
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* June Syn trades at $2.65/bbl over WTI
* June WCS trades at $11.35/bbl under WTI

(Updates prices, adds details on wildfire)
NEW YORK, May 9 (Reuters) - Canadian crude prices climbed
further on Monday as a raging wildfire in northern Alberta
entered a second week and traders braced for possible supply
constraints as the blaze had spurred some producers to shut
facilities as a precaution.
Canadian prices rallied during the latter half of last week
as a number of producers, including Suncor Energy Inc SU.TO
and Shell RDSA.L , took some 1 million barrels a day of
capacity offline as a precaution due to the fast-spreading fire.
That was about half the total output from Canada's oil sands.

Officials said on Sunday they were more optimistic about
handling Canada's most destructive wildfire in recent memory.
However, it still was not known when energy companies would
restart operations at affected sites or when Fort McMurray's
88,000 evacuated residents could return.
The fires continued to burn on Monday, but officials were
hopeful that cooler weather and the potential for rain later in
the week would aid in fighting the blaze.
Western Canadian Select (WCS) heavy blend crude for June
delivery SHRWCSMc2 traded as strongly as $11.00 a barrel under
the West Texas Intermediate benchmark, according to Shorcan
Energy Brokers.
That was the narrowest discount since June 2015, though it
last traded at a $11.45/bbl discount to U.S. crude. It settled
at a $11.95-a-barrel discount on Friday.
Light synthetic crude from the oil sands for June
SHRSYNMc2 traded at as high as a $3.00 a barrel premium to
U.S. crude CLc1 , and last traded at a $2.40 a barrel premium.
It settled at a $2.45 a barrel premium on Friday.

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