Canada Oil Prices Ease as Wildfire Moves Away from Oil Sands
Canadian crude prices slipped on Tuesday as oil companies moved towards restarting output and assessing damage as the raging wildfire in northern Alberta shifted direction away from key production facilities.
Numerous producers and pipeline companies took production offline last week due to the fire, shutting in about 1 million barrels a day as a precautionary measure. In the last day, however, Shell Canada said it had restarted production, albeit at a reduced rate, while many other energy companies remain off line.
Repair crews on Tuesday assessed wildfire damage to Fort McMurray after an initial inspection by officials showed the Canadian energy boomtown was spared the worst, while nearby oil sands companies looked to resume production.
The fires continued to burn on Monday, but cooler weather helped firefighters battle the blaze.
Western Canadian Select (WCS) heavy blend crude for June delivery slipped on Tuesday, trading at $12.30 a barrel under the U.S. crude benchmark, according to Shorcan Energy Brokers. It settled at $11.60 on Monday. Prices are still somewhat elevated from prior to the fire, when WCS settled at $13.55/bbl below crude.
Light synthetic crude from the oil sands for June traded at $1.25 to West Texas Intermediate crude , down from $1.75 on Monday.
(Reporting By David Gaffen; Editing by Andrew Hay)
