Crude prices drop as Canada wildfire eases
During Tuesday’s Asia trade, crude oil prices edged down because threats to crude output in Canada due to wildfires have eased, sparking worries of a surging global oversupply once again.
With approximately 2,400 structures burnt to the ground, the fire in Alberta, Canada has been called the costliest natural disaster in the history of Canada. Taking into the proximity to the oil-sand industry, a great number of oil makers in the area have already cut their output, with at least 654,000 barrels a day currently cut, approximately more than a quarter of a daily output. By the way, fire officials told that cooler temperatures has already hampered the spread of the wildfires since Sunday.
In New York, June delivery sweet light crude futures traded were worth $43.23, down $0.21. As for July delivery Brent crude futures, they went up $0.09, trading at $43.73 per barrel.
Crude prices came under greater pressure after private data forecaster Genscape told inventor at major American delivery hum in Cushing Okla. acquired up to 1.4 million barrels.