(Bloomberg) — Heavy Canadian crude rose after a spill led to the shutdown of a pipeline that supplies diluent to two major oil-sands sites in Alberta.
Following the leak Saturday morning, Inter Pipeline (OTC:) Ltd. shut the west segment of its 240,000-barrel-a-day Polaris (NYSE:) system. The diluent Polaris supplies to sites operated by Exxon Mobil Corp (NYSE:).’s Imperial Oil (NYSE:) and by Husky Energy (OTC:) Inc. is mixed with the sticky bitumen they produce, so that it can be shipped by pipeline.
The Western Canadian Select crude benchmark for October delivery rose 2.9% to $ 33.53 a barrel on Tuesday, narrowing its discount to West Texas Intermediate to $ 9.85, the first time the gap fell below $ 10 since Aug. 17, NE2 Group data show.
There is still no estimate for a restart of the impacted segment of the Polaris system and no update was expected on Tuesday, Inter Pipeline said. The east segment of the pipeline, which supplies some other oil-sands sites, is fully operational.
Husky, operator of the Sunrise oil-sands site, has been affected by the pipeline shutdown, “however, we have other options to help mitigate the effects,” spokeswoman Dawn Delaney said.
Imperial said it’s assessing the impact of the pipeline shutdown on its Kearl heavy-crude mine. Co-generation power readings from Kearl were zero on Tuesday, according to Alberta Electric System Operator data.
Also See: Inter Pipeline Resumes Service on Corridor Pipeline System
Inter Pipeline is working to dig up the line, Shawn Roth, a Alberta Energy Regulator spokesman, said. New booms have been deployed and wildlife containment measures taken. The site is difficult to access but a helicopter and vehicles have reached the location, he said.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.