Oil prices rise due to forest fires in Canada and expectations of a decline in US inventories

Oil prices rose in early trading on Wednesday, with major forest fires threatening the sands region oil in Canada and the market expecting a decline in US crude oil and gasoline stocks later today.

Brent crude futures rose 34 cents, or 0.4%, to $82.71 per barrel. US West Texas Intermediate crude futures rose 38 cents, or 0.5%, to $78.39 a barrel by dawn on Wednesday.

A huge wildfire was approaching Fort McMurray, the center of Canada’s oil sands industry, with production of about 3.3 million barrels per day, or two-thirds of the country’s total production, and thousands in the suburbs were asked to evacuate.

Meanwhile, US producer prices rose more than expected in April. While the possibility of lowering interest rates has become less certain, Federal Reserve Chairman Jerome Powell said that it is still unlikely that the bank will be forced to raise interest rates further.

Consumer price data in the United States, in addition to data on crude oil and gasoline inventories in the United States, are expected
to be released today, Wednesday. Market sources quoted figures from the American Petroleum Institute yesterday, Tuesday, saying that US crude oil and gasoline inventories decreased last week.

Source: National Iraqi News Agency