Bakken crude differentials firmed on Dec. 3 to the strongest level in a month, moving alongside rising Canadian prices after Alberta officials mandated oil-production cuts over the weekend, traders said.
Bakken crude for delivery on the Enbridge Inc pipeline at Clearbrook, Minnesota, traded at a $5 per barrel discount to the calendar month average of U.S. crude futures, traders said. That is the strongest since Oct. 24 and up from a $9.40 discount on Nov. 30.
Crude from North Dakota's Bakken shale, the country's third-largest shale oil field, traded at a record $20 discount to U.S. crude last month. Record-breaking oil production has overwhelmed pipelines out of the Bakken and kept prices well below benchmark futures.
Bakken crude's rally followed Canadian crude, after Alberta Premier Rachel Notley said Canada would cut crude production by 8.7%, or 325,000 barrels per day, in an effort to stop producing more crude than can be carried to market by pipeline and rail.
Western Canadian Select (WCS) traded in the low $20 range below U.S. crude futures on Dec. 3, down from the Nov. 30 settle of $32 below the West Texas Intermediate benchmark, according to Shorcan Energy brokers.
Overall crude oil stocks, not including the U.S. Strategic Petroleum Reserve, fell to 466.6 million barrels from their highest levels in 19 months.
Chevron wanted the Pasadena refinery purchased from Petrobras to process sweet crude coming from its oil fields in the Permian Basin of Texas.
Fire and fog at the Houston Ship Channel could not stop the record.