• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 15 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 1 day Is Europe heading for winter of discontent with extensive gas shortages?
  • 10 mins "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 1 day ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 2 hours Wind droughts
  • 7 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 18 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days Xi Is Set To Be Re-Elected As China’s Leader
  • 11 days Oil Prices Fall After Fed Raises Rates
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 day Australian power prices go insane
  • 1 day Europeans and Americans are beginning to see the results of depending on renewables.
  • 12 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
The Next Bullish Catalyst For Oil Markets

The Next Bullish Catalyst For Oil Markets

Oil markets were relatively unscathed…

Why OPEC+ Is Considering A Production Cut

Why OPEC+ Is Considering A Production Cut

OPEC+ appears to be on…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Canadian Oil Prices Surge As Upgrader Goes Offline

An unscheduled suspension of operations at Syncrude’s upgrader in Alberta has lifted Canadian oil prices substantially, also strengthening U.S. blends that make up WTI, as the bulk of Canadian synthetic crude and heavy oil sands crude is exported to its southern neighbor.

As a result, prices of Canadian heavy crude jumped to the highest in two years, while the price of synthetic crude, which is what the Syncrude facility produces and a lot of oil sands producers use, rose to a four-year high. The spread between WTI and Western Canadian Select shrank to $9.80 per barrel, the narrowest since 2015, Bloomberg said.

The suspension was prompted by a fire at the upgrader last month. The fire put a temporary stop to oil production at the Syncrude project, majority-owned by Canadian Suncor, which will be in effect throughout April. However, a Suncor spokeswoman told Bloomberg that pipeline deliveries of “finished product” from the upgrader will be restored at up to 50 percent of the usual rate later this month.

The Syncrude upgrader, which processes bitumen from the Alberta oil sands, producing synthetic oil, is the second-largest such facility in Canada, with a daily throughput of 350,000 bpd. Related: Tanker Traffic Points At Much Tighter Oil Markets

As a result of the fire and consequent suspension for repairs, ConocoPhillips, which produces heavy crude from bitumen extracted at its Surmont project, has had to shrink its 140,000 bpd output. Conoco has to mix its Surmount output with synthetic oil from the Syncrude facility, and quite a lot of it—40-60 percent of the end product—in order for the oil to be shipped south via pipelines. The disruption comes as Conoco plans to bring the total daily production rate of Surmount to 150,000 bpd by the end of this year.

Aggravating the problem of Canadian crude supply are other upgraders who are undergoing scheduled maintenance, which has so far taken off 76,000 bpd from daily output.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Bill Simpson on April 10 2017 said:
    Those Canadians had better get the pipelines into the USA finished, while the business friendly Republicans are still in total power in the United States. No US government is likely to shut down working pipelines. (It is probably illegal.) Building new ones, could be a different story. Get er done, Canada.
    China can get oil from next door Russia, and the Middle East. The excessive debt China is creating, and the coming effects of their long one child policy, could cause them severe economic problems not too far down the road. The USA will be a great oil market for the rest of this century, even if there are wars and revolutions in China, and all over the planet. And both the US and Canada believe in human rights. The communist dictatorship who run China, not so much. They and Putin make a great pair.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News