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Oil higher as Canada wildfire disrupts production

Published 09/05/2016, 13:56
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Investing.com - Oil prices jumped on Monday as a huge wildfire in Canada's oil sand region knocked out over a million barrels in daily production capacity, contributing to a significant tightening of markets.

U.S. crude futures jumped 93 cents or 2.08% to $45.59 per barrel by 09:05 GMT.
Brent crude rose 72 cents, or 1.59%, to $46.09 a barrel.

The lost capacity is equivalent to well over a third of the country's typical daily production, with almost all of Canada's crude from oil sands exported to the U.S.

Prices received an additional boost from data showing a jump in Chinese crude imports last month.

Markets were also watching Saudi Arabia, where a government shake-up over the weekend included the appointment of a new oil minister.

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