A force majeure adds to crude supply woes

File photo Source: Syncrude

Syncrude Canada Ltd. cut September supplies due to a mechanical disruption at its oil sands site, according to a person familiar with the situation. 

In a force majeure notice sent by one of Syncrude’s four owners earlier this month, customers were informed of a supply cut of as much as 20 per cent in September, the person said, asking not to be named because they are not allowed to publicly discuss the matter. Requests for comment to Suncor and fellow owners Imperial Oil Ltd., Sinopec Canada and CNOOC Ltd. weren’t immediately returned. 

Syncrude’s upgrader produced about 275,000 barrels a day between January and May, Alberta Energy Regulator data show. 

The supply cut out of Canada happens as oil production in the Gulf of Mexico has been slow to recover from Hurricane Ida, which struck the Louisiana coast on Aug. 29 and forced the shut-in of most offshore production in the region. Almost 300,000 barrels a day of Gulf of Mexico crude output remains down due to the impact of the storm. 

© 2021 Bloomberg L.P.

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