Canada crude - Heavy dips on expectations of more supply
CALGARY, Alberta, July 23
CALGARY, Alberta, July 23 (Reuters) - Canadian heavy crude prices weakened in thin trade on Tuesday, pushed lower by anticipation of increased supply from Imperial Oil's Kearl oil sands project.
West Canada Select heavy blend for August delivery last traded at $17 dollars per barrel below the West Texas Intermediate benchmark, according to Shorcan Energy brokers.
That compares with a settlement price on Monday of $15.90 per barrel below WTI.
Trading activity was subdued however, as the Canadian crude market is currently outside the "trading window" - a roughly three-week period beginning on the first day of each month and lasting until pipeline nominations are due.
There was little reaction to news that shippers on Kinder Morgan Energy Partners LP's over-booked 300,000 barrel per day Trans Mountain oil pipeline would be limited to only 31 percent of their hoped for volumes in August.
One Calgary-based crude trader said that level of apportionment was standard on the pipeline.
"Mostly Kearl production is trending differentials wider," he added.
Imperial Oil last month said output from the Kearl Oil Sands project in Northern Alberta would reach full capacity of 110,000 bpd over the summer.
There were no trades in light synthetic crude from the oil sands for August delivery reported by Shorcan Energy brokers on Tuesday. Monday's settlement price was $3 per barrel above WTI.