Oil prices have increased due to supply disruptions in Canada and production cuts elsewhere.

International Brent crude futures were up 47 cents and traded at $44.10 per barrel, while the US crude futures increased 21 cents at $43.65, Reuters reported.

Widespread wildfires in Canada have resulted in a fall of 2.5 million barrels of daily production in the market. The wildfire disrupted significant amounts of crude production at the oil sands town of Fort McMurray.

"Ongoing bearish fundamentals precipitated a modest retracement in prices."

Although conditions are improving, producers expect the closures to continue for several weeks as inspection needs to be carried out for pipelines that were located close to the fires.

Since the beginning of this year, outages in Canada are believed to have pushed global disruptions to more than 2.5 million bpd.

Due to this, supply glut worries that emerged in mid-2014 have been wiped out.

Goldman Sachs anticipates a fall in US oil production by 650,000bpd in this year, while BMI Research said that Asian production would drop by 4.9%.

The news agency quoted Societe Generale as saying: "Despite some significant supply disruptions, most notably in Canada, ongoing bearish fundamentals precipitated a modest retracement in prices."