(Reuters) -- Canadian heavy crude prices held near multi-month lows on Thursday, with some traders citing concerns about increased congestion in one of Enbridge Inc.'s main export pipelines to the United States.
Western Canada Select heavy blend for December delivery last traded at $36 per bbl below the West Texas Intermediate benchmark, according toShorcan Energy Brokers, unchanged from Wednesday's settlement price.
Trading volumes were thin as the Canadian crude market is outside the nearly three-week-long trading "window" -- between the first of the month and the day before pipeline nominations are due -- when most trading takes place.
Prices have recovered slightly since hitting a 10-month low of $41.50 per bbl below WTI on Nov. 5, but market players in Calgary said concerns about limited space on pipelines and crude getting bottlenecked in Alberta meant gains were likely to be limited.
Enbridge, whose pipelines carry the bulk of Canadian crude oil exports to the United States, said it will ration space on five lines in December.
Although apportionment on four lines was reduced from November, it rose on the 231,000 bbl-per-day Line 6B, which runs between Griffith, Indiana, and Sarnia, Ontario.
Line 6B will be apportioned by 45 per cent in December, meaning producers will only be able to ship 55 per cent of nominated volumes.
"It's a big number on a line that mostly carries heavy crude. It's certainly a problem for the industry as a whole. It just throws a wrench into everything," said one Calgary crude trader.
Light synthetic crude from the oilsands for December delivery strengthened slightly to trade at $13 per bbl below WTI. On Wednesday, synthetic crude settled at $14 per bbl below the benchmark.
Royal Dutch Shell Plc reported minor routine maintenance at its 100,000 bbl-per-day refinery at Scotford, near Edmonton, but said there would be no material impact on production.
Meanwhile, Imperial Oil Ltd. said operations were normal at its 187,000 bbl-per-day refinery in Strathcona, also near Edmonton, after flaring was reported.