The differential for Syncrude Sweet Premium crude increased 50 cents/b Thursday morning, hitting its highest point in almost two months, before retreating 35 cents later on, as a result of suggestions of lower output at a Suncor Fort McMurray upgrader in Alberta.
However, Suncor said: "We don't provide real-time status updates on any of our operations."
Multiple traders said there had been an unexpected partial shut-in at Suncor's Oil Sands Base operations in Fort McMurray, which they believed was causing volatility in SSP price differentials.
One trader was more specific, stating that it's "gotta" be because Suncor is having trouble filling its upgrader due to "some issues" at the Millennium mine site. Sources said it is unclear which upgrader at the site is being affected.SSP was heard traded at the calendar-month average of the front-month NYMEX light sweet crude oil futures contract (WTI CMA) plus 85 cents/b in early morning action before falling 35 cents/b to trade at WTI CMA plus 50 cents/b. It was subsequently heard bid at WTI CMA plus 40 cents/b and offered at plus 60 cents/b. SSP traded at WTI CMA plus 35 cents/b late Wednesday.
The highest assessment prior to Thursday's strength was WTI CMA plus 55 cents/b on July 5.
Thursday's early morning increase was the largest since August 9, when SSP climbed 55 cents/b, largely on expectations that the Dakota Access Pipeline would be starting linefill sometime in the fourth quarter.
Traders said SSP's strength was not related to planned 32-day maintenance starting October 7 at Suncor's Naphtha Hydrotreater, Kerosene Hydrotreater, and Gas Oil Hydrotreater at Fort McMurray's Upgrader 1.
