The shutdown of Canadian Natural Resources Ltd.’s 110,000-barrel-a-day Horizon oil sands project after a fire may bring benchmark West Texas Intermediate crude back from a “supercontango” and narrow its discount to Brent oil, according to analysts at JPMorgan Chase & Co.
“The loss of this upgrader will further decrease flows to the region, and should lead to a tightening of WTI spreads,” analysts led by Lawrence Eagles said in a note to clients. “It is also important to recognize that there was already a supply bottleneck in Canada before the outage, therefore it is not simply a case of subtracting the capacity of the upgrader from Cushing flows,” the analysts wrote.
http://www.bloomberg.com/news/2011-01-07/canadian-oil-sands-fire-brings-wti-back-from-supercontango-jpmorgan-says.html(RTTNews) - Canadian Natural Resources Limited (CNQ: News ,CNQ.TO: News ), Monday, issued a further update relating to the January 6 fire at the primary upgrading facility at the company's Horizon Oil Sands plant. The incident is being investigated by the company as also Occupational Health and Safety, or OH&S, and its causes are yet to be determined.
http://www.rttnews.com/ArticleView.aspx?Id=1523076
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