Forest fires in Canada has led to reduced supplies of oil


Major forest fires in the vicinity of Fort McMurray, the centre for the extraction of oil from tar Sands in Alberta, Canada, has led to reduced supplies from this region to 800 thousand Barr./day, writes the Financial Times, citing analysts of British consulting firm Energy Aspects. They estimate that “the situation remains unstable and we can expect further interruptions”.

According to the canadian broadcaster CBC, the immediate threat deposits in Fort McMurray no, but oil companies are cutting production as a measure of precaution, evacuating from the danger zone staff and members of their families. In particular, this is stated in the message of Suncor Energy.

A Shell company spokesman Cameron Yost said the CBC that as a precaution the field is closed Albian Sands and taking steps to evacuate 2 million people from the staff. According to a representative of Husky Energy Mel Duvall, the field of the sunrise leaving only the necessary staff. On the reduction of operations also said the Syncrude representative, and representatives of the Athabasca Oil Sands, Canadian Natural Resources and ConocoPhillips announced that it would be prepared to suspend operations if necessary. According to Reuters, the energy company Enbridge began preparations to close down its pipeline because of the threat of fire.

Of Fort McMurray and the surrounding area as of Wednesday were evacuated 88 thousand people, reported CBC citing the head of the local fire Department Darby Allen. The fire has already destroyed almost 1.6 thousand buildings, quoted the Prime Minister of Alberta, Rachel Notley, the American channel ABC. By the evening of Wednesday the fire began to threaten another three settlements to the South of Fort McMurray, which led to the evacuation of about 1.5 thousand people, reports CBC.

Canada produces about 4.5 million barrels./day, of whom 2.3 million came from oil Sands. Three-quarters of canadian oil exported to the US, mainly through pipelines, the FT notes.

The London-based broker PVM Oil David Houghton believes that the events in Canada are characteristic for the current year in the oil market, where prices are supported due to sudden supply disruptions. Since January, oil prices rose more than 60%. The FT recalls that, according to analysts, OPEC only in unforeseen circumstances had led to a reduction in production of nearly 2 million barrels./day.

The publication notes that a further decrease in supply can occur because of a dispute of economic entities in Libya, where an oil company the government established in Benghazi, in the East, trying to establish control over the export of oil, which is now carried out by the national oil company, controlled by the government in Tripoli. Currently, Libya produces less than 350 thousand Barr./day compared with 1.6 million before the civil war.

14:40 MSK cost of a barrel of Brent oil rose by 2.6% from the closing, up to $45,76. Us WTI crude oil rose by 3.11% to $45,14/bbl.