May 19, 2020

Oil prices rise as wildfires hit Canadian supplies

Canadian wildfires
Canadian oil industry
Natural disasters and impacts on business
awrara ra
1 min
Oil prices rise as wildfires hit Canadian supplies

As wildfires continue to rage through rural Canada, the price of oil is rising as a result of destroyed supplies.

According to Business Insider, UK Brent oil rose by more than one percent on Monday, as Canada’s oil sands reserves suffer from one of the country’s biggest natural disasters in recent times.

The fires are expected to continue for weeks to come, which will further dent supplies and could see prices rise further. Despite this concern for industry, the loss of life and devastation caused to communities throughout Canada is, of course, the primary concern.

So far more than 80,000 people have been forced out of their homes as the fires evade control by firefighters desperately trying to contain the blazes.

Analysts at Energy Aspects say that 800,000 barrels a day of production has ceased or is in the process of being shut down. 

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