Oil prices have increased due to a fall in production following an wildfire near production sites in Canada.
Brent crude futures LCOc1 were up 10 cents and traded at $45.07 per barrel, while the US crude CLc1 rose 24 cents at $43.89 a barrel, Reuters reported.
The wildfire caused a full evacuation of Fort McMurray oil sands area, resulting in reduction of output at some facilities in Canada.
The economy in the US is also faltering, with output in the country falling from 9.6 million barrels per day (bpd) in 2015 to just over 8.9 million bpd in 2016.
Barclays was reported as saying that ‘unplanned outages look unlikely to abate in the next couple of months, which have contributed to a tighter 1H16 oil market’.
Data released by the American Petroleum Institute highlighted an increase in crude inventories in the US by 1.3 million barrels to 539.7 million barrels in the week ending 29 April, despite a plunge in production.
Saudi Arabian production is expected to return to 10.5 million bpd, while Iranian exports are believed to have nearly doubled to almost two million bpd since 2016 beginning.